External Seminar by Robert Lensink

14-02-2019 from 16:30 to 17:45
Facultaire Raadzaal, Tweekerkenstraat 2
Economics Seminars
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Uptake and Impacts of Interlinked Index-based Insurance with Credit and Agricultural Inputs: Experimental Evidence from Ethiopia

by Robert Lensink (University of Groningen, University of Wageningen, IEEF and CIBIF)


This paper describes the results of a randomized experiment in Ethiopia to examine the relevance of bundling index insurance with credit and access to inputs. We compare 4 index insurance options in terms of adoption of modern technologies, consumption and productivity: (1) a standard index insurance product; (2) a newly developed index insurance product that is promoted via farmer groups and has a delayed premium option; (3) the newly developed index insurance product bundled with a credit option and (4) the newly developed index insurance product bundled with a credit and input purchasing option.

We find that allowing farmers to postpone premium payment improves uptake and consumption expenditures significantly. However, in order to increase investment in modern agricultural technologies and productivity, which is highly important for long run growth in the agricultural sector, bundling insurance with credit and access to inputs is needed.

His main research interests lie in finance and development, impact analyses, experimental economics, development economics, external finance and capital market imperfections. His work has been published in journals such as American Economic Review, Journal of Banking and Finance, Journal of International Money and Finance, Oxford Bulletin of Economics and Statistics, World Development and Journal of Money, Credit and Banking. For more information, see https://www.rug.nl/staff/b.w.lensink/.

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