Holdings: How Does Risk Management Influence Production Decisions? Evidence from a Field Experiment

How Does Risk Management Influence Production Decisions? Evidence from a Field Experiment

Weather is a key source of income risk for many firms and households, particularly in emerging market economies. This paper uses a randomized controlled trial approach to study how an innovative risk management instrument for hedging rainfall risk...

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Bibliographic Details
Main Authors:	Cole, Shawn, Giné, Xavier, Vickery, James
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ACCESS TO INSURANCE ACCOUNTING ADVERSE SELECTION ALLOCATION AMOUNT OF CREDIT ASSET HOLDINGS AUCTION AUTOMOBILE INSURANCE BANK POLICY BID BIDS BOND BOND MARKET BORROWING BUDGETING CAPITAL FLOWS CAPITAL INVESTMENT CAPITAL STRUCTURE CASH PAYMENT CHECKS CLIMATE CLIMATE CHANGE CLIMATE VARIABILITY COMMODITY PRICE COMPENSATION CONSUMERS CONSUMPTION SMOOTHING CORPORATE FINANCE CORPORATE INVESTMENT COST OF INSURANCE COUPONS CREDIT DEFAULT CREDIT DEFAULT SWAPS CREDIT RISK CROP INSURANCE DATED CHECK DECISIONMAKING DERIVATIVES DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISTRIBUTIONAL EFFECTS DUMMY VARIABLE ECONOMIC ACTIVITY ECONOMIC THEORY EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKET ECONOMY EMPLOYMENT EXCHANGE RATE EXPENDITURES FACE VALUE FARMING HOUSEHOLD FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL CONSTRAINTS FINANCIAL DECISIONS FINANCIAL ECONOMICS FINANCIAL INNOVATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL STUDIES FINANCIAL SUPPORT FINANCIAL SYSTEM FOREIGN CURRENCY FORGIVENESS FUTURES HOUSEHOLD INCOME HOUSEHOLD SAVINGS HOUSEHOLD WEALTH HURRICANE INCOME INCOME DISTRIBUTION INCOME SHOCKS INCOME SMOOTHING INCOME STREAM INCOMPLETE MARKETS INNOVATIONS INSTRUMENT INSURANCE INSURANCE AGENTS INSURANCE ARRANGEMENTS INSURANCE COMPANY INSURANCE CONTRACT INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE MARKET INSURANCE MARKETS INSURANCE PAYOUT INSURANCE POLICIES INSURANCE POLICY INSURANCE PRODUCT INSURANCE PRODUCTS INSURANCE SECTOR INSURERS INTEREST RATE INTEREST RATE SWAPS INTERNATIONAL BANK INVESTING INVESTMENT BEHAVIOR INVESTMENT DECISIONS LABOR SUPPLY LAND USE LANDOWNER LIFE INSURANCE LIQUID ASSETS MARKET ECONOMIES MARKET ECONOMY MARKET VALUE MICRO-INSURANCE MICROINSURANCE MISSING MARKETS MONETARY VALUES MONEYLENDERS MORAL HAZARD MORTALITY NET COST OPTIMAL INVESTMENT PARTICULAR DEBT POLITICAL ECONOMY PORTFOLIO PORTFOLIO CHOICE POST OFFICE PRESENT VALUE PRODUCTIVITY PROFITABILITY RATES OF RETURN RESOURCE ECONOMICS RETURN RETURNS RISK AVERSION RISK DIVERSIFICATION RISK EXPOSURE RISK MANAGEMENT RISK MITIGATION SECURITIZATION SETTLEMENT SETTLEMENT DATE SUBSTITUTION TAX TRANSACTION TRANSITORY INCOME UTILITY FUNCTION VALUATION VALUATION TECHNIQUES VALUATIONS WEALTH EFFECTS WEATHER DERIVATIVES WEATHER INSURANCE household finance underinvestment
Online Access:	http://documents.worldbank.org/curated/en/2013/07/18030727/risk-management-influence-production-decisions-evidence-field-experiment http://hdl.handle.net/10986/15904

Internet

http://documents.worldbank.org/curated/en/2013/07/18030727/risk-management-influence-production-decisions-evidence-field-experiment
http://hdl.handle.net/10986/15904

How Does Risk Management Influence Production Decisions? Evidence from a Field Experiment

Internet

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