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The Spillover Impact of Index Insurance on Agricultural Investment by Cotton Farmers in Burkina Faso / Quentin Stoeffler, Michael Carter, Catherine Guirkinger, Wouter Gelade.
- Format:
- Book
- Author/Creator:
- Stoeffler, Quentin.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w27564.
- NBER working paper series no. w27564
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- This paper examines whether agricultural insurance can boost investment by small scale farmers in West Africa. We conduct a randomized evaluation to analyze the impacts of index insurance for cotton farmers in Burkina Faso. We find no impact of insurance on cotton, but, consistent with microeconomic theory, we find significant spillover impacts on investment in other agricultural activities. Furthermore, the effects of insurance payouts on farmers hit by a shock confirm the potential of index insurance as a risk-management tool. However, we uncover important flaws in the implementation of the project that limited its impacts. Overall, this study suggests a promising role of index insurance for stimulating investment, but also draws attention to key challenges for an efficient delivery of insurance to small farmers. Finally, the hybrid, mixed methods RCT design that we employ offers lessons for the evaluation of complex interventions where trust, understanding and timing are all important.
- Notes:
- Print version record
- July 2020.
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