Findings in the Area of Economic Behavior and Organization Reported from Wageningen University (Risk and Ambiguity Aversion Behavior In Index-based Insurance Uptake Decisions: Experimental Evidence From Ethiopia)

2021 FEB 26 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Current study results on Economics - Economic Behavior and Organization have been published. According to news reporting originating from Wageningen, Netherlands, by NewsRx correspondents, research stated, “Index-based insurance (IBI) is an innovative pro-poor climate risk management strategy that suffers from low uptake. Evidence on the role of behavioral impediments in adoption of IBI is scant.”

Financial supporters for this research include Netherlands Fellowship Programme (NFP), Economic & Social Research Council (ESRC), UK Department for International Development (DFID).

Our news editors obtained a quote from the research from Wageningen University, “We conducted lab-in-the-field experiments with 1139 smallholders out of whom 596 have adopted IBI in Ethiopia to elicit their risk and ambiguity aversion behavior, and examine whether risk and/or ambiguity aversion can explain actual IBI uptake decisions. Our study suggests that an increase in risk-aversion increases uptake, but an increase in ambiguity-aversion lowers uptake of IBI.”

According to the news editors, the research concluded: “We also find evidence that an increase in risk aversion speeds-up the uptake of IBI, while an increase in ambiguity aversion delays the adoption of IBI.”

This research has been peer-reviewed.

For more information on this research see: Risk and Ambiguity Aversion Behavior In Index-based Insurance Uptake Decisions: Experimental Evidence From Ethiopia. Journal of Economic Behavior & Organization, 2020;180:718-730. Journal of Economic Behavior & Organization can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Economic Behavior & Organization - http://www.journals.elsevier.com/journal-of-economic-behavior-and-organization/)

The news editors report that additional information may be obtained by contacting Marcel van Asseldonk, Wageningen University, Dev Econ Grp, Wageningen, Netherlands. Additional authors for this research include Temesgen Keno Belissa and Robert Lensink.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jebo.2019.07.018. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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