Index insurance and basis risk: A reconsideration

Lichtenberg, Erik ORCID: https://orcid.org/0000-0003-0619-6254 and Iglesias Martínez, Eva ORCID: https://orcid.org/0000-0002-7086-7553 (2022). Index insurance and basis risk: A reconsideration. "Journal of Development Economics", v. 158 ; ISSN 0304-3878. https://doi.org/10.1016/j.jdeveco.2022.102883.

Descripción

Título: Index insurance and basis risk: A reconsideration
Autor/es:
Tipo de Documento: Artículo
Título de Revista/Publicación: Journal of Development Economics
Fecha: 26 Abril 2022
ISSN: 0304-3878
Volumen: 158
Materias:
ODS:
Palabras Clave Informales: Agricultural insurance; Agriculture; CREDIT; development; Index insurance; Rural financial markets; agricultural insurance; Demand; Development; Index insurance; Risk; Rural financial markets
Escuela: E.T.S. de Ingeniería Agronómica, Alimentaria y de Biosistemas (UPM)
Departamento: Economía Agraria, Estadística y Gestión de Empresas
Licencias Creative Commons: Reconocimiento - Sin obra derivada - No comercial

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Resumen

Index insurance has been seen as an important tool for managing the risks faced by farmers in developing countries but uptake has been disappointingly low. Basis risk is often cited as one of the main reasons for the lack of uptake. We investigate the role of basis risk in greater depth by considering contracts that allow farmers to choose the level of the index that triggers an indemnity in addition to coverage. We show that risk averse farmers will select trigger levels to protect against catastrophic outcomes, even if downside basis risk increases. A numerical simulation model bears out our theoretical results.

Más información

ID de Registro: 93215
Identificador DC: https://oa.upm.es/93215/
Identificador OAI: oai:oa.upm.es:93215
URL Portal Científico: https://portalcientifico.upm.es/es/ipublic/item/9933598
Identificador DOI: 10.1016/j.jdeveco.2022.102883
URL Oficial: https://www.sciencedirect.com/science/article/pii/...
Depositado por: iMarina Portal Científico
Depositado el: 21 Ene 2026 16:23
Ultima Modificación: 21 Ene 2026 16:23