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To account for the non-random uptake of WII, we use an instrumental variable approach. We find that WII crowds out social capital - insured households\r\ncontribute significantly less to the public good than uninsured households. Our findings from the experiment are corroborated using real-life measures of social capital,\r\nincluding informal transfers to fellow villagers and financial contributions to community projects. We find support for two channels underlying these results: (i) WII\r\ncreates positive externalities on uninsured households, which induces them to free-\r\nride. Anticipating this, insured households respond by lowering their investment in\r\nsocial capital. And (ii), WII increases perceptions of self-sufficiency that is, insured\r\nhouseholds need to rely less on others in times of need."},"dsDescriptionDate":{"typeName":"dsDescriptionDate","multiple":false,"typeClass":"primitive","value":"2021-08-30"}}]},{"typeName":"subject","multiple":true,"typeClass":"controlledVocabulary","value":["Social Sciences"]},{"typeName":"keyword","multiple":true,"typeClass":"compound","value":[{"keywordValue":{"typeName":"keywordValue","multiple":false,"typeClass":"primitive","value":"Weather Index Insurance (WII)"}},{"keywordValue":{"typeName":"keywordValue","multiple":false,"typeClass":"primitive","value":"free-riding"}},{"keywordValue":{"typeName":"keywordValue","multiple":false,"typeClass":"primitive","value":"self-sufficiency"}},{"keywordValue":{"typeName":"keywordValue","multiple":false,"typeClass":"primitive","value":"social capital"}},{"keywordValue":{"typeName":"keywordValue","multiple":false,"typeClass":"primitive","value":"Ethiopia"}}]},{"typeName":"publication","multiple":true,"typeClass":"compound","value":[{"publicationCitation":{"typeName":"publicationCitation","multiple":false,"typeClass":"primitive","value":"Nigus, H.Y. 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