Ruth Vargas Hill|Luis Robles|Francisco Ceballos
Demand for Weather Hedges in India: An Empirical Exploration of Theoretical Predictions
income risk substantial farmers developing countries formal insurance markets risk poorly developed result increasing trend sell weather hedges smallholder farmers manage risk paper analyzes demand rainfallbased weather hedges among farmers rural india explore predictions standard expected utility theory framework nature demand products particular testing whether demand behaves predicted respect price basis hedge risk aversion using data randomized control trial price basis risk varied series hedging products offered farmers find demand behaves predicted demand falling price basis risk appearing humpshaped risk aversion second analyze understanding demand hedging products time examining impact increased investments training hedging products well evidence learning among farmers find evidence suggests learning effective increasing understanding demand