The effect of weather index insurance on social capital: Experimental evidence from Ethiopia
| Autor: | Nigus, Halefom Y., Nillesen, Eleonora, Mohnen, Pierre |
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| Přispěvatelé: | Maastricht Graduate School of Governance, RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn, QE Econometrics, RS: FSE MGSoG |
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
h41 - Public Goods
Shadow Economy weather index insurance c93 - Field Experiments social capital public good game Ethiopia |
| Popis: | In this study, using data from lab-in-the-field experiment, we explore whether the introduction of weather index insurance crowds in or crowds out social capital in northern Ethiopia. We use contributions in the public good game as a measure of social capital. We find that weather index insurance crowds out social capital. The free-riding problem created by the positive externality of weather index insurance and development of self-sufficiency behaviour are found to be the causal mechanisms behind the crowding out phenomenon. Our results indicate that formal insurance mechanisms do not occur in a vacuum and may have unintended effects. Hence, this study suggests that novel insurance product design and marketing strategies should be used to ameliorate such unintended effects. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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