New Economics Papers
on Microfinance
Issue of 2005‒04‒16
one paper chosen by
Aastha Pudasainee and Iman van Lelyveld

  1. Are the poor too poor to demand health insurance? By Rajeev Ahuja; Johannes Jutting

  1. By: Rajeev Ahuja (Indian Council for Research on International Economic Rela); Johannes Jutting (Indian Council for Research on International Economic Rela)
    Abstract: Community based micro insurance has aroused much interest and hope in meeting health care challenges facing the poor. In this paper we explore how institutional rigidities such as credit constraint impinge on demand for health insurance and how insurance could potentially prevent poor households from fallinginto poverty trap. In this setting, we argue that the appropriate public intervention in generating demand for insurance is not to subsidise premium but to remove these rigidities (easing credit constraint in the present context). Thus from insurance perspective as well, our analysis highlights the importance of having appropriate savings and borrowing instruments for the poor.
    Keywords: Micro-insurance, Micro-credit, Credit Constraint, Demand for Insurance
    Date: 2004–01

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