TY - JOUR
T1 - The impact of bundling index insurance with credit and input vouchers
T2 - Experimental evidence from Ethiopia
AU - Belissa, Temesgen K.
AU - Lensink, Robert
AU - Marr, Ana
N1 - Publisher Copyright:
© 2025
PY - 2025/6
Y1 - 2025/6
N2 - This study assesses the uptake and impact of bundling index insurance with credit and input vouchers through a randomized control trial experiment. Smallholder farmers in Ethiopia are randomly assigned to a control group and three treatment arms, namely: (1) stand-alone index insurance with upfront premium payment, (2) stand-alone index insurance with delayed premium payment, (3) bundled index insurance with credit and delayed premium payment, or (4) bundled index insurance with credit and input vouchers with delayed premium payment. Distinguishing itself from previous studies, our research specifically isolates the impact of bundling from that of delayed premiums. The results highlight the crucial role of the bundled aspect (i.e., credit and inputs), not only in increasing uptake but also in fostering farming investments and productivity.
AB - This study assesses the uptake and impact of bundling index insurance with credit and input vouchers through a randomized control trial experiment. Smallholder farmers in Ethiopia are randomly assigned to a control group and three treatment arms, namely: (1) stand-alone index insurance with upfront premium payment, (2) stand-alone index insurance with delayed premium payment, (3) bundled index insurance with credit and delayed premium payment, or (4) bundled index insurance with credit and input vouchers with delayed premium payment. Distinguishing itself from previous studies, our research specifically isolates the impact of bundling from that of delayed premiums. The results highlight the crucial role of the bundled aspect (i.e., credit and inputs), not only in increasing uptake but also in fostering farming investments and productivity.
KW - Bundled index insurance with credit and inputs
KW - Consumption smoothing
KW - Index insurance
KW - Investment in agricultural inputs
KW - Randomized control trial
UR - http://www.scopus.com/inward/record.url?scp=105002862478&partnerID=8YFLogxK
U2 - 10.1016/j.jebo.2025.107013
DO - 10.1016/j.jebo.2025.107013
M3 - Article
AN - SCOPUS:105002862478
SN - 0167-2681
VL - 234
JO - Journal of Economic Behavior & Organization
JF - Journal of Economic Behavior & Organization
M1 - 107013
ER -