This paper examines whether agricultural insurance can boost investment by small scale farmers in West Africa. It is based on a randomized evaluation designed to analyze the impacts of index insurance for cotton farmers in Burkina Faso. No impact of insurance was found on cotton, but, consistent with microeconomic theory, significant spillover impacts on investment in other agricultural activities were measured. Furthermore, the effects of insurance payouts on farmers hit by a shock confirm the potential of index insurance as a risk-management tool. However, this research uncovers important flaws in the implementation of the project that limited its impact on cotton. Overall, this study suggests a promising role for index insurance in stimulating investment, but also draws attention to key challenges to the efficient delivery of insurance to small farmers. Finally, the study’s hybrid, mixed methods RCT offers lessons for the evaluation of complex interventions where trust, understanding, and timing are all important.

中文翻译：

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指数保险对布基纳法索棉农农业投资的溢出影响

本文研究了农业保险是否可以促进西非小农的投资。它基于一项随机评估，旨在分析指数保险对布基纳法索棉农的影响。没有发现保险​​对棉花的影响，但与微观经济理论一致，测量了对其他农业活动投资的显着溢出影响。此外，保险赔付对遭受冲击的农民的影响证实了指数保险作为风险管理工具的潜力。然而，这项研究揭示了该项目实施过程中限制其对棉花影响的重要缺陷。总体而言，这项研究表明指数保险在刺激投资方面发挥着积极作用，但也提请注意向小农有效提供保险的主要挑战。最后，该研究的混合、混合方法 RCT 为评估复杂干预措施提供了经验，其中信任、理解和时机都很重要。