The Rise Fund: TPG Bets Big on Impact
Citation:
Gandhi, Vikram S., and Shawn A. Cole. "The Rise Fund: TPG Bets Big on Impact." Harvard Business School Multimedia/Video Supplement 220-711, December 2019. View Details|
Article American Economic Journal: Applied Economics January 2013 Barriers to Household Risk Management: Evidence from India |
Abstract
Why do many households remain exposed to large exogenous sources of non-systematic income risk? We use a series of randomized field experiments in rural India to test the importance of price and non-price factors in the adoption of an innovative rainfall insurance product. Demand is significantly price sensitive, but widespread take-up would not be achieved even if the product offered a payout ratio comparable to U.S. insurance contracts. We present evidence suggesting that lack of trust, liquidity constraints, and limited salience are significant non-price frictions that constrain demand. We suggest contract design improvements to mitigate these frictions.
Keywords: Risk Management; Household; India;
Citation:
Cole, Shawn A., Xavier Gine, Jeremy Tobacman, Petia Topalova, Robert M. Townsend, and James Vickery. "Barriers to Household Risk Management: Evidence from India." American Economic Journal: Applied Economics 5, no. 1 (January 2013): 104–135.
