Demand for Weather Index Insurance among Smallholder Farmers under Prospect Theory

被引：4

作者：

Shin, Soye ^{[1
]}

Magnan, Nicholas ^{[2
]}

Mullally, Conner ^{[3
]}

Janzen, Sarah ^{[4
]}

机构：

[1] Duke NUS Med Sch, Program Hlth Serv & Syst Res, 8 Coll Rd, Singapore 169857, Singapore

[2] Univ Georgia, Dept Agr & Appl Econ, 315C Conner Hall, Athens, GA 30602 USA

[3] Univ Florida, Food & Resource Econ Dept, 1107 McCarty Hall, Gainesville, FL 32611 USA

[4] Univ Illinois, Dept Agr & Consumer Econ, 317 Mumford Hall Urbana, Champaign, IL 61801 USA

来源：

JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION | 2022年 / 202卷

关键词：

Basis risk; index insurance; loss aversion; prospect theory; risk aversion; D81; G22; Q14; BASIS RISK; PROBABILITY; PREFERENCES; MANAGEMENT; VALUATION; DECISIONS; BEHAVIOR; ADOPTION; UTILITY; TIME;

D O I：

10.1016/j.jebo.2022.07.027

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

Index insurance offers an innovative risk management solution for uninsured agricultural weather risk. We investigate the theoretical relationship between prospect theory risk preferences and characteristics of index insurance. We pair these theoretical findings with data from a lab-in-the-field experiment in Kenya. Empirically, we find that insurance de-mand is decreasing in loss aversion, and the negative marginal effect of loss aversion on insurance demand increases with basis risk and the insurance premium. Our theoretical and empirical results combined illustrate the importance of considering both risk and loss aversion, as well as basis risk, in understanding index insurance decisions.(c) 2022 Elsevier B.V. All rights reserved.

引用

页码：82 / 104

页数：23

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