Staff Publications

Staff Publications

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    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

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Record number 554345
Title Credit, insurance and farmers’ liability: Evidence from a lab in the field experiment with coffee farmers in Costa Rica
Author(s) Naranjo, María A.; Pieters, Janneke; Alpízar, Francisco
Source Journal of Economic Behavior and Organization 166 (2019). - ISSN 0167-2681 - p. 12 - 27.
Department(s) Green Economy and Landuse
Development Economics
Environmental Economics and Natural Resources
Publication type Refereed Article in a scientific journal
Publication year 2019
Availibility Full text available from 2022-10-01
Keyword(s) Agriculture - Credit - Insurance - Liability

This paper examines the effect of farmers’ liability on demand for credit with and without insurance. We test predictions of a theoretical model in a lab in the field experiment with coffee farmers in Costa Rica. Farmers choose how much to invest in six different settings, described on the one hand by whether the loan is insured or not, and on the other by their liability. Our results show that the uptake of loans bundled with insurance is significantly higher than the uptake of loans without insurance, when farmers are liable for sure, and when there is uncertainty about their liability. In the case of limited liability, the uptake of credit is high irrespective of whether the loans are insured or not. Our results suggest that in order to increase the uptake of insurance as a strategy to increase private investment and reduce the vulnerability of farmers to shocks, it is important that farmers are liable with at least some probability.

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