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An Experiment on the Impact of Weather Shocks and Insurance on Risky Investment

We conduct a framed field experiment in rural Ethiopia to test the seminal hypothesis that insurance provision induces farmers to take greater, yet profitable, risks. Farmers participated in a game protocol in which they were asked to make a simple decision: whether to purchase fertilizer, and if so, how many bags. The return to fertilizer was dependent on a stochastic weather draw made in each round of the game protocol. In later rounds of the game protocol, a random selection of farmers made this decision in the presence of a stylized weather-index insurance contract.

Evaluating the Long-Term Impact of Antipoverty Interventions in Bangladesh

This paper provides an overview of a research project that assessed the long-term impact of three antipoverty interventions in Bangladesh—the introduction of new agricultural technologies, educational transfers, and microfinance—on monetary and non monetary measures of well-being. This paper begins by setting out the conceptual framework, methodology, and empirical methods used for the evaluation of long-term impacts. It discusses the context of the evaluations and the longitudinal data used.

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