Uptake and impact of interlinked index-based insurance with credit and agricultural inputs: experimental evidence from Ethiopia

Temesgen Belissa, Robert Lensink and Ana Marr

No 23810, Greenwich Papers in Political Economy from University of Greenwich, Greenwich Political Economy Research Centre

Abstract: This paper examines the results of randomized experiments in Ethiopia that assess the relevance of bundling index-based insurance (IBI) with credit and inputs. We compare four IBI options and their impact on adoption of modern technologies, consumption and productivity: (1) standard IBI; (2) newly-developed IBI, i.e. promoted via farmer groups and featuring a delayed premium option; (3) new IBI bundled with credit; and (4) new IBI bundled with credit and inputs. We find that only when farmers adopt a package comprised of insurance, credit and inputs, do they significantly increase their investment in modern agricultural technologies and, consequently, productivity grows.

Keywords: index-based Insurance (IBI); interlinked IBI-credit-input; randomized control trial (search for similar items in EconPapers)
Date: 2018-10-29
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Persistent link: https://EconPapers.repec.org/RePEc:gpe:wpaper:23810

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