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Agricultural decisions after relaxing credit and risk constraints

Research Paper #:



  Agricultural decisions after relaxing credit and risk constraints


Dean Karlan, Yale University, IPA, J‐ PAL and NBER
Robert Osei, University of Ghana – Legon
Isaac Osei Akoto, University of Ghana – Legon
Christopher Udry, Yale University

Date of Publication:

  October 2012


Research Paper #23 examines how uninsured risk constrains farmers in Northern Ghana. It shows that when provided with insurance against the primary catastrophic risk they face, farmers are able to increase expenditure on their farms and make riskier choices. The study finds a strong demand for insurance among these farmers. Insurance payouts further increase this demand in subsequent years both among recipients and among their social networks.

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