UMD-Led Study Examines How Subsidies, Extreme Weather Events, and Financial Education Can All Work Together to Promote Long-Term Agricultural Insurance Adoption
In a new paper published in American Economic Review, researchers conducted the first ever experimental study to look at the impact of subsidy policies on insurance policy adoption.
- In a new paper published in American Economic Review, researchers conducted the first ever experimental study to look at the impact of subsidy policies on insurance policy adoption.
- This paper provides insight into this dilemma known as the "insurance puzzle", with implications for insurance subsidy policies and educational programs.
- "And in poor countries, agricultural cultivation is their main source of income and they often face a lot of weather challenges where insurance could help recuperate their losses, but even then, insurance adoption is very low.
- This finding has clear implications for insurance policies, not just in rural areas, but across all settings where insurance adoption is a problem.