Back to Search
Start Over
Social Networks, Financial Literacy and Index Insurance
- Publication Year :
- 2013
- Publisher :
- World Bank, Washington, DC, 2013.
-
Abstract
- 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.
- Subjects :
- FINANCIAL LITERACY
AGRICULTURAL FINANCE
DEVELOPMENT ECONOMICS
FARM
INSURANCE COMPANIES
MUTUAL INSURANCE
VALUABLE
COFFEE GROWING
FINANCIAL MATERIALS
HOUSEHOLD SIZE
TRANSACTION COSTS
IRRIGATION
EXTERNALITIES
RURAL HOUSEHOLDS
COFFEE FARMERS
RETIREMENT
RETIREMENT PLAN
FINANCIAL SECTOR
POOR
DROUGHT
PUBLIC ECONOMICS
INCOME
POOR HOUSEHOLDS
COFFEE TREES
FARM SIZE
BUYERS
FINANCIAL EDUCATION
AGRICULTURAL ACTIVITIES
FARMER
RURAL
ADMINISTRATIVE SUPPORT
RESEARCH ASSISTANCE
FINANCIAL SUPPORT
PROBABILITY
COFFEE
INSURANCE MARKETS
ADVERSE SELECTION
BEST PRACTICES
CASH TRANSFERS
MORAL HAZARD
INSURANCE
ATTRITION
HOUSEHOLD HEAD
FINANCIAL LITERACY MATERIALS
FARMERS
RISK MANAGEMENT
TRANSACTION
Subjects
Details
- Language :
- English
- Database :
- OpenAIRE
- Accession number :
- edsair.od......2456..229308614716985e3819599da7acf2e0