01841cas a2200277 a 4500 AALejournalIMF012050 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475505443 1018-5941 BD-DhAAL BD-DhAAL Townsend, Robert. Barriers to Household Risk Management : Evidence from India / Robert Townsend, Shawn Cole, Jeremy Tobacman, Xavier Gine. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (43 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Cole, Shawn. Gine, Xavier. Tobacman, Jeremy. IMF Working Papers; Working Paper ; No. 2012/195 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/195/001.2012.issue-195-en.xml IMF e-Library