The Role of Social Networks in Weather Insurance Take-up by Rice Farmers in China

Abstract

Given well recognized low adoption by farmers of weather insurance contracts, the experimental research reported in this Brief explores the role of directly provided financial education versus indirectly acquired understanding through the social networks to which farmers belong. Results show that financial understanding is necessary to adopt and that social networks are an effective way of making the benefits of financial education acquired by some to many others in the village, particularly if those who received direct education are strongly connected to others, village leaders, or influential farmers.
Citation

Cai J., de Janvry A., Soudoulet E. (2011) "The Role of Social Networks in Weather Insurance Take-up by Rice Farmers in China", FERDI Policy Brief B26