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The authors present a randomized field experiment measuring the direct impact and social network spillovers of providing financial literacy and discount vouchers on farmers decision to purchase index-based drought insurance. To examine this, the authors form clusters by grouping together geographically proximate households. Clusters were then randomly assigned to receive either a high or low intensity of each of the following treatments: financial literacy materials and discount vouchers off the price of insurance. The authors find social network spillovers to the provision of financial literacy materials but no spillovers to the provision of discount vouchers on farmers decision to purchase insurance. Specifically, receiving financial literacy materials when 60% or more of their neighbors also receive financial literacy materials, increases the likelihood that a farmer will purchase insurance by 4.3 percent (s.e. 2.5 percent) while receiving a financial literacy materials when 40 percent or fewer of their neighbors also receive financial literacy materials, decreases the likelihood that a farmer will purchase insurance by 2.6 percent (s.e. 2.5 percent). Looking at the discount vouchers, we find significant own effects of receiving discounts off the price of insurance on farmers take-up decision but negligible social network effects. Our results provide suggestive evidence that financial literacy materials are efficacious in encouraging take-up when farmers social contacts are similarly receive access to financial literacy materials.

The authors evaluate the impact of an educational intervention, in which a Kenyan non-governmental organization distributes school uniforms to children in poor communities. The Nongovernmental organization (NGO) used a lottery to determine who would receive uniforms. Although compliance with the lottery was not perfect, we use winning the lottery as an instrumental variable to identify the impact of receiving a uniform. The authors find that giving a school uniform significantly reduces school absenteeism by 38 percent. Effects are much larger for poorer students who did not previously own a uniform: a 64 percent reduction in school absenteeism. Preliminary data suggest positive impacts of uniform distribution on test scores in core subjects.