Risk, Agricultural Production, and Weather Index Insurance in Village India

• Tác giả: Jeffrey D Michler, Gerald E Shively, Frederi G Viens
• Ngôn ngữ: eng
• Ký hiệu phân loại: 780.954 Music
• Thông tin xuất bản: 2021
• Bộ sưu tập: Metadata
• ID: 166550

Tóm tắt

We investigate the sources of variability in agricultural production and their relative importance in the context of weather index insurance for smallholder farmers in India. Using parcel-level panel data, multilevel modeling, and Bayesian methods we measure how large a role seasonal variation in weather plays in explaining yield variance. Seasonal variation in weather accounts for 19-20 percent of total variance in crop yields. Motivated by this result, we derive pricing and payout schedules for actuarially fair index insurance. These calculations shed light on the low uptake rates of index insurance and provide direction for designing more suitable index insurance.