A Theory of Rational Demand for Index Insurance

By D. Clarke. 2016

349 citations recorded by the source corpus.

Subfields: Demography, Economics and Econometrics, Soil Science

View Paper: https://www.semanticscholar.org/paper/e006cdff2870882b80f1eb4d422ff2e4d82eed68

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Citations in the corpus

Time versus State in Insurance: Experimental Evidence from Contract Farming in Kenya (2018, background): “When background risk is high, this tension between insurance and self-insurance could explain why insurance demand is often decreasing with risk aversion ( Clarke 2016 .”
Agricultural Index Insurance for Development (2017, background): “Basis risk is believed to dampen demand for index products for the intuitive reason that the higher a product’s basis risk, the less true insurance coverage it offers a prospective buyer (Miranda and Farrin 2012; BinswangerMkhize 2012; Clarke 2016).”
Index Insurance Quality and Basis Risk: Evidence from Northern Kenya (2016, methodology): “Other articles use simulations, aggregate-level data, and/or experiments to examine basis risk (e.g., Breustedt, Bokusheva, and Heidelback 2008; Clarke 2011; Norton, Turvey, and Osgood 2012; Elabed et al. 2013; Dercon et al. 2014; Leblois, Quirion, and Sultan 2014).”
The Demand for Microinsurance: A Literature Review (2017, background): “…an insurance comes with much basis risk and a risk-sharing agreements succeeds in providing coverage when the insurance fails to pay out, improved risk-sharing attenuates the negative efect of the basis risk and can thereby increase demand for insurance (Mobarak and Rosenzweig 2012; Clarke 2011a).”
Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh (2014, methodology): “Appendix 4 Risk Aversion, Insurance and Basis Risk This appendix provides a simple model of basis risk based on Clarke (2011) and uses it to argue that our 2011 insurance experiment can be used to test whether migration is risky and migrants are risk averse.”
How Basis Risk and Spatiotemporal Adverse Selection Influence Demand for Index Insurance: Evidence from Northern Kenya (2014, methodology): “25 Clarke (2016) shows that demand for index insurance with basis risk should first increase and then decrease as risk aversion increases.”