Naranjo, Maria Angelica, Janneke Pieters and Francisco Alpízar. 2016. “Credit, insurance and farmers’ liability: Evidence from a lab-in- the-field experiment with coffee farmers in Costa Rica” EfD Research Brief
Insurance is a key element for farmers’ investment decisions, but only if the government clearly communicates that it cannot provide full debt relief to all.
This research examines the effect of farmers’ liability for debt on their 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.