Data for: Trust, Information, and Liquidity Constraints to Adopting Weather Insurance: A Randomized Controlled Trial in Ethiopia

  • Francesco Cecchi (Creator)
  • Shubhashis Gangopadhyay (Creator)
  • Robert Lensink (Creator)
  • Erwin H. Bulte (Creator)
  • T.K. Belissa (Creator)



We report the results of a drought insurance experiment in Ethiopia, and examine whether uptake of index-based insurance is enhanced if we allow farmers to pay after harvest (addressing a liquidity constraint). We also test to what extent uptake can be enhanced by promoting insurance via informal risk-sharing institutions (Iddirs), to reduce trust and information problems. The delayed payment insurance product increases uptake substantially when compared to standard insurance, from 8% to 24%, and leveraging informal institutions results in even greater uptake (43%). We also find suggestive evidence that the delayed premium product is indeed better at targeting the liquidity constrained. However, default rates associated with delayed payments are relatively high and concentrated in a small number of Iddirs – potentially compromising the economic viability of the novel product. We discuss how default rates can be reduced.
Date made available9-Jul-2019
PublisherMendeley Data, Elsevier
Geographical coverageEthiopia

Keywords on Datasets

  • Economics
  • Economic Development
  • Weather
  • Insurance

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