Insurance and Rural Welfare: What can Panel Data tell us?

Research output: Working paperProfessional

Abstract

Assessing the scope for insurance in rural communities usually requires a structural model of household behavior under risk. One of the few empirical applications of such models is the study by Rosenzweig and Wolpin (1993) who conclude that Indian farmers in the ICRISAT villages would not benefit from the introduction of formal weather insurance. In this paper we investigate how models such as theirs can be estimated from panel data on production and assets. We show that if assets can take only a limited number of values the coefficients of the model cannot be estimated with reasonable precision. We also show that this can affect the conclusion that insurance would not be welfare improving.
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Instituut
Publication statusPublished - 2007

Publication series

NameDiscussion paper TI
No.07-011/2

Fingerprint

Insurance
Panel data
Assets
Weather
Coefficients
Structural model
Rural communities
Household behavior
Farmers

Cite this

Elbers, C., Gunning, J. W., & Pan, L. (2007). Insurance and Rural Welfare: What can Panel Data tell us? (Discussion paper TI; No. 07-011/2). Amsterdam: Tinbergen Instituut.
Elbers, Chris ; Gunning, Jan Willem ; Pan, Lei. / Insurance and Rural Welfare: What can Panel Data tell us?. Amsterdam : Tinbergen Instituut, 2007. (Discussion paper TI; 07-011/2).
@techreport{5c8995ff6bc146da97e9454bb234aa0c,
title = "Insurance and Rural Welfare: What can Panel Data tell us?",
abstract = "Assessing the scope for insurance in rural communities usually requires a structural model of household behavior under risk. One of the few empirical applications of such models is the study by Rosenzweig and Wolpin (1993) who conclude that Indian farmers in the ICRISAT villages would not benefit from the introduction of formal weather insurance. In this paper we investigate how models such as theirs can be estimated from panel data on production and assets. We show that if assets can take only a limited number of values the coefficients of the model cannot be estimated with reasonable precision. We also show that this can affect the conclusion that insurance would not be welfare improving.",
author = "Chris Elbers and Gunning, {Jan Willem} and Lei Pan",
year = "2007",
language = "English",
series = "Discussion paper TI",
publisher = "Tinbergen Instituut",
number = "07-011/2",
type = "WorkingPaper",
institution = "Tinbergen Instituut",

}

Elbers, C, Gunning, JW & Pan, L 2007 'Insurance and Rural Welfare: What can Panel Data tell us?' Discussion paper TI, no. 07-011/2, Tinbergen Instituut, Amsterdam.

Insurance and Rural Welfare: What can Panel Data tell us? / Elbers, Chris; Gunning, Jan Willem; Pan, Lei.

Amsterdam : Tinbergen Instituut, 2007. (Discussion paper TI; No. 07-011/2).

Research output: Working paperProfessional

TY - UNPB

T1 - Insurance and Rural Welfare: What can Panel Data tell us?

AU - Elbers, Chris

AU - Gunning, Jan Willem

AU - Pan, Lei

PY - 2007

Y1 - 2007

N2 - Assessing the scope for insurance in rural communities usually requires a structural model of household behavior under risk. One of the few empirical applications of such models is the study by Rosenzweig and Wolpin (1993) who conclude that Indian farmers in the ICRISAT villages would not benefit from the introduction of formal weather insurance. In this paper we investigate how models such as theirs can be estimated from panel data on production and assets. We show that if assets can take only a limited number of values the coefficients of the model cannot be estimated with reasonable precision. We also show that this can affect the conclusion that insurance would not be welfare improving.

AB - Assessing the scope for insurance in rural communities usually requires a structural model of household behavior under risk. One of the few empirical applications of such models is the study by Rosenzweig and Wolpin (1993) who conclude that Indian farmers in the ICRISAT villages would not benefit from the introduction of formal weather insurance. In this paper we investigate how models such as theirs can be estimated from panel data on production and assets. We show that if assets can take only a limited number of values the coefficients of the model cannot be estimated with reasonable precision. We also show that this can affect the conclusion that insurance would not be welfare improving.

M3 - Working paper

T3 - Discussion paper TI

BT - Insurance and Rural Welfare: What can Panel Data tell us?

PB - Tinbergen Instituut

CY - Amsterdam

ER -

Elbers C, Gunning JW, Pan L. Insurance and Rural Welfare: What can Panel Data tell us? Amsterdam: Tinbergen Instituut. 2007. (Discussion paper TI; 07-011/2).