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oai:grips.repo.nii.ac.jp:00001723 2023-11-20T08:43:05Z 1:99

Understanding Pastoralists’ Dynamic Insurance Uptake Decisions: Evidence from Four-year Panel Data in Ethiopia TAKAHASHI, Kazushi NORITOMO, Yuma IKEGAMI, Munenobu JENSEN, Nathaniel D. index-based livestock insurance dynamic demand Ethiopia https://www.grips.ac.jp/list/jp/facultyinfo/takahashi-kazushi/ Using a unique data set covering four years and six semi-annual sales periods of an index-based livestock insurance (IBLI) product in southern Ethiopia, we examine the dynamics of pastoralists’ demand for IBLI. We find that: (1) there is intertemporal dependence of an uptake decision, represented by correlations of unobserved household factors over time; (2) conditional on previous purchase decisions, factors related to continuing the purchase of IBLI to augment existing coverage and replace lapsing contracts differ significantly; (3) controlling for time-invariant household-fixed effects, neither a one-shot subsidy nor the uptake of others in one’s social network influence subsequent demand, whereas less vegetation and reduced insurance premiums induce households to purchase IBLI. Overall, our study provides rigorous micro-evidence to better understand the dynamic uptake of IBLI and signifies the importance of an empirical analysis that takes into account the dynamic demand structure. JEL Classification Codes: D12, D14, D81, G22, O12 This work was made possible by the financial support provided by Cornell University, National Graduate Institute for Policy Studies (GRIPS), the International Livestock Research Institute (ILRI), the JSPS Grant-in-Aid for Scientific Research (B)-26301021, the US Agency for International Development (USAID) Agreement No. LAG-A-00-96-90016-00 through the Broadening Access and Strengthening Input Market Systems Collaborative Research Support Program (BASIS AM) Innovation Lab, the Department of Foreign Affairs and Trade through the Australia Development Research Awards Scheme, and the CGIAR Research Programs on Climate Change, Agriculture and Food Security, and on Dryland Systems. GRIPS Policy Research Center 2019-10-23 eng technical report AM https://doi.org/10.24545/00001711 https://grips.repo.nii.ac.jp/records/1723 10.24545/00001711 https://ideas.repec.org/p/ngi/dpaper/19-22.html https://ideas.repec.org/p/ngi/dpaper/19-22.html GRIPS Discussion Papers DP19-22 https://grips.repo.nii.ac.jp/record/1723/files/DP19-22.pdf application/pdf 546.7 kB