EconPapers    
Economics at your fingertips  
 

How Basis Risk and Spatiotemporal Adverse Selection Influence Demand for Index Insurance: Evidence from Northern Kenya

Nathaniel Jensen (), Andrew Mude and Christopher Barrett ()

MPRA Paper from University Library of Munich, Germany

Abstract: Basis risk – the remaining risk that an insured individual faces – is widely acknowledged as the Achilles Heel of index insurance, but to date there has been no direct study of its role in determining demand for index insurance. Further, spatiotemporal variation leaves open the possibility of adverse selection. We use rich longitudinal household data from northern Kenya to determine which factors affect demand for index based livestock insurance (IBLI). We find that both price and the non-price factors studied previously are indeed important, but that basis risk and spatiotemporal adverse selection play a major role in demand for IBLI.

Keywords: Pastoralists; Index Insurance; Uptake (search for similar items in EconPapers)
JEL-codes: D81 O16 Q12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-agr, nep-ias and nep-mfd
Date: 2014-12-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/60452/1/MPRA_paper_60452.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/60578/1/MPRA_paper_60578.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/72484/8/MPRA_paper_72484.pdf revised version (application/pdf)

Related works:
Journal Article: How basis risk and spatiotemporal adverse selection influence demand for index insurance: Evidence from northern Kenya (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:60452

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2019-12-05
Handle: RePEc:pra:mprapa:60452