@techreport{823a775e949e40699af39532f2e3f09f,
title = "The effect of weather index insurance on social capital: Experimental evidence from Ethiopia",
abstract = "In this study, using data from lab-in-the-field experiment, we explore whether the introduction of weather index insurance crowds in or crowds out social capital in northern Ethiopia. We use contributions in the public good game as a measure of social capital. We find that weather index insurance crowds out social capital. The free-riding problem created by the positive externality of weather index insurance and development of self-sufficiency behaviour are found to be the causal mechanisms behind the crowding out phenomenon. Our results indicate that formal insurance mechanisms do not occur in a vacuum and may have unintended effects. Hence, this study suggests that novel insurance product design and marketing strategies should be used to ameliorate such unintended effects. ",
keywords = "weather index insurance, social capital, public good game, Ethiopia",
author = "Nigus, {Halefom Y.} and Eleonora Nillesen and Pierre Mohnen",
note = "Data source : survey data collected in Ethopia.",
year = "2018",
language = "English",
volume = "2018-007",
series = "UNU-MERIT Working Papers",
publisher = "UNU-MERIT working papers",
number = "2018-007",
type = "WorkingPaper",
institution = "UNU-MERIT working papers",
}