Standard models often predict that people should either demand to save or demand to borrow, but not both. We hypothesise instead that saving and borrowing among microfinance clients are substitutes, satisfying the same underlying demand: for a regular schedule of deposits and a lump-sum...

Standard models often predict that people should either demand to save or demand to borrow, but not both.  We hypothesise instead that saving and borrowing among microfinance clients are substitutes, satisfying the same underlying demand: for a regular schedule of deposits and a lump-sum...

This paper examines the characteristics that determine demand for microinsurance when individuals have personal or observed experience with a rare weather event: the severe 2010 flooding in Pakistan. Using a sample of 384 individuals (192 in flood-affected and 192 non-affected villages matched...

This paper investigates the impact of rare-event experiences and observations on risk taking. Matching detailed individual, household, and community-level surveys with behavioral games data, we explore the mechanisms that underlie individual risk-taking after a natural disaster. Unlike the...

We estimate the effect of early warnings on the likelihood of households taking action to mitigate damages before the severe 2010 flood in Punjab, Pakistan. Using a survey of 640 households conducted after the floods, we find that face-to-face warnings significantly increase the probability of...

This paper investigates the impact of rare-event experiences and observations on risk taking. Matching detailed individual, household, and community-level surveys with behavioral games data, we explore the mechanisms that underlie individual risk-taking after a natural disaster. Unlike the...