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Delayed Premium Payment, Insurance Adoption, and Household Investment in Rural China
Author(s) -
Liu Yanyan,
Chen Kevin,
Hill Ruth V.
Publication year - 2020
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1002/ajae.12038
Subject(s) - payment , investment (military) , business , china , production (economics) , insurance premium , agricultural economics , actuarial science , finance , economics , geography , archaeology , politics , political science , law , macroeconomics
We conduct a randomized controlled trial to examine the impacts of delayed premium payment on insurance uptake and the subsequent investment decisions among smallholder farmers in rural China. Our results show uptake among those with the delayed payment option is 10% higher than and three times as high as among those without the option. We also find a positive impact of delayed premium payment and insurance adoption on household investment in production, especially higher risk activities.