Nudge to insure: Can informational nudges change enrollment decisions in pasture, rangeland, and forage rainfall index insurance?
Date
2021-11-25
Journal Title
Journal ISSN
Volume Title
Publisher
Applied Economic Perspectives and Policy
Abstract
Through a framed field experiment with livestock farmers in the Northeast and Southeast United States, this research explores whether an informational nudge changes producers' selection of two-month intervals and/or increases the likelihood of enrollment in pasture, rangeland, and forage (PRF) insurance. We find no evidence that a nudge influences interval choices; however, producers are more likely to enroll when PRF is framed as a risk management decision regarding forage loss. Risk aversion, familiarity with other United States Department of Agriculture livestock programs, and higher risk exposure increase the likelihood of enrollment. Past PRF and crop insurance participation decrease the amount insured during growing-season months.
Description
This is a pre-copyedited, author-produced version of an article accepted for publication in Applied Economic Perspectives and Policy following peer review. The version of record Davidson, Kelly A., and Goodrich, Brittney K.. 2021. “ Nudge to insure: Can informational nudges change enrollment decisions in pasture, rangeland, and forage rainfall index insurance?.”Applied Economic Perspectives and Policy 1– 21. https://doi.org/10.1002/aepp.13215 is available online at: https://doi.org/10.1002/aepp.13215.
Keywords
experimental economics, nudge, pasture, rangeland, and forage insurance, risk management
Citation
Davidson, Kelly A., and Goodrich, Brittney K.. 2021. “ Nudge to insure: Can informational nudges change enrollment decisions in pasture, rangeland, and forage rainfall index insurance?.”Applied Economic Perspectives and Policy 1– 21. https://doi.org/10.1002/aepp.13215