Tag
Agricultural Risk
2 findings
DevelopmentBasis Risk as Adoption Barrier36 out of 120 Kebeles (30%) were excluded because dominant risks were non-drought perils (frost and flooding) lacking indices, and another 35 Kebeles were dropped due to incomplete historical station rainfall records required for reinsurance pricing.Expert TheoryDevelopmentCultivator Labor Demand SensitivityA 1 standard deviation increase in rainfall per day increases harvest labor demand by 3.3 days more for insured cultivators compared to uninsured cultivators in the same village (a 22% increase in relative demand; t-stat = 2.39).RCT