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Evaluating the Impact of Index Insurance on Cotton Farmers in Peru

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Publication date
02/12/2010
Number of Pages
22
Language:
English
Type of Publication:
Studies
Focus Region:
Latin America & the Caribbean
Focus Topic:
Climate / Weather / Environment
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk transfer
Commodity:
Crops
Author
Steve Boucher, Conner Mullally
Organization
UC-Davis

This case study is organized as follows. First, how index insurance works and why there is significant excitement around it as a poverty alleviation tool is explained. Next, the pilot insurance project in Peru is described. The following section then turns to the encouragement design. After laying out the general logic of randomized encouragements and the specific impact evaluation questions that it can (and cannot) answer, the specific methodology used in Peru is explained. The last section concludes with some general (and hard learned) lessons from this specific research design experience.