TY - BOOK ID - 11273779 TI - Barriers to household risk management : evidence from India PY - 2012 VL - WP/12/195 SN - 1475593686 1475505442 147556547X 1475512341 9781475512342 9781475593686 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Management KW - Business & Economics KW - Management Styles & Communication KW - Financial risk KW - Risk management KW - Business risk (Finance) KW - Money risk (Finance) KW - Insurance KW - Risk KW - E-books KW - Finance: General KW - Macroeconomics KW - Industries: Financial Services KW - Insurance Companies KW - Actuarial Studies KW - Field Experiments KW - Economic Development: Financial Markets KW - Saving and Capital Investment KW - Corporate Finance and Governance KW - Personal Finance KW - Portfolio Choice KW - Investment Decisions KW - Financial Institutions and Services: General KW - Education: General KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Insurance & actuarial studies KW - Finance KW - Education KW - Insurance companies KW - Consumption KW - Liquidity KW - Financial institutions KW - National accounts KW - Asset and liability management KW - Economics KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:11273779 AB - 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. ER -