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AbstractThis study aims to analyze the influence of weather index insurance on farmers’ credit default rates of loan group in trust games. A field economic experiment was conducted with 324 farmers in Heilongjiang Province, China. The results indicate that the weather index insurance reduces the default rates of farmers and improves the efficiency of group loan after mitigating the natural risk. Trust between farmers is an important factor affecting their default rates. Trust acts as a mediating variable, reinforcing the effect of weather index insurance on credit default rates. In order to reduce loan defaults by farmers and credit risks for financial institutions, the government should promote the credit linked with weather index insurance. Furthermore, financial institutions should pay attention to informal risk-sharing mechanisms to decrease default risks. [ABSTRACT FROM AUTHOR]

Digital technologies are promising tools for sustainable agriculture; however, the cutting-edge digital solutions in agriculture are impractical for smallholder farmers in developing countries. Smallholder farmers need access to credit and insurance services, quality farm inputs, advisory services, subsidies, and market services to be able participate in sustainable agriculture. This paper is part of an extensive study conducted using the design science research (DSR) methodology. As part of our previous research, we conducted a thorough survey of the various stakeholders in Tanzania to assess their needs. Thereafter, we designed a conceptual digital framework called Farmers' Digital Information System (FDIS), which provides all the necessary services to smallholder farmers and other stakeholders and addresses the identified needs. This paper presents a technical implementation of FDIS that aims to deliver essential services to smallholder farmers for sustainable agriculture within a comprehensive single mobile application. We used Android Studio Iguana and a Flutter framework to develop four service modules that include farmer and farm data, advisory services, and financial and marketing services as part of the FDIS platform. The system reflects the services offered in a real-world environment, as farmers can directly request advice from experts, apply for credit services from financial institutions, and market farm products to meet potential customers. It solves problems of access to farm advisory services and credit services for farm investment and helps farmers to find reliable markets for their products without going through intermediaries (middlemen). The completion of the FDIS development presented here will be followed by a test of the platform with real users for evaluation and improvement. Future research will focus on the scalability of FDIS for different regions, the embedding of more advanced technologies, and the adaptability of FDIS to different agricultural ecosystems. The FDIS solution has the potential to improve sustainable farming and empower smallholder farmers in Tanzania and beyond. [ABSTRACT FROM AUTHOR]

We address the effect of local financial conditions on the demand for non-life insurance. We consider the spread between the interest rates faced by the insured on the local credit market and the return rates earned by the insurer on national or international financial markets, sketching how it influences the present value of an insurance policy; we then use the local invariance of the insurer's returns to identify the effect on demand. Drawing on a panel of Italian provinces with ample variability in insurance density as well as borrowing conditions, we show that the demand for non-life insurance decreases with the borrowing rate. We separate between different non-life insurance lines, finding a stronger effect for the lines prevailing in advanced economic systems. Credit conditions turn out to be an important factor of non-life insurance development, and they help to explain the underdevelopment of insurance markets in Southern Italy. [ABSTRACT FROM AUTHOR]

Ensuring exporters can access finance is critical for governments as they look to encourage trade and drive economic growth. However, firms face challenges in securing export finance and trade credit insurance as geopolitical and trade megatrends lead to increased political, market and credit risks. In a dynamic global landscape, the role of export credit agencies (ECAs) has never been more important. Based on the 'Futures Triangle' analytical framework and drawing on qualitative data from 35 semi‐structured interviews and expert discussions using thematic analysis, this research assesses the implications of key megatrends for ECAs. It presents new insights into the impact on strategies, products and operations: The evolution of mandates towards a 'growth promoter' in a 'whole‐of‐government' approach, the necessity to introduce new products and the need to balance multiple priorities such as export growth, support for small and medium‐sized enterprises (SMEs), inclusive trade, climate action and impact on developing markets. The recommendations are intended to help policymakers and public finance practitioners understand and respond strategically to global changes. [ABSTRACT FROM AUTHOR]

Generalized additive models (GAMs) are a leading model class for interpretable machine learning. GAMs were originally defined with smooth shape functions of the predictor variables and trained using smoothing splines. Recently, tree-based GAMs where shape functions are gradient-boosted ensembles of bagged trees were proposed, leaving the door open for the estimation of a broader class of shape functions (e.g. Explainable Boosting Machine (EBM)). In this paper, we introduce a competing three-step GAM learning approach where we combine (i) the knowledge of the way to split the covariates space brought by an additive tree model (ATM), (ii) an ensemble of predictive linear scores derived from generalized linear models (GLMs) using a binning strategy based on the ATM, and (iii) a final GLM to have a prediction model that ensures auto-calibration. Numerical experiments illustrate the competitive performances of our approach on several datasets compared to GAM with splines, EBM, or GLM with binarsity penalization. A case study in trade credit insurance is also provided. [ABSTRACT FROM AUTHOR]

A widely held view is that small firms in developing countries are prevented from making profitable investments by lack of access to credit and insurance markets. One solution is to provide repayment flexibility in credit contracts. Repayment flexibility eases both the credit constraint, as it allows for increased spending during the start-up phase, and offers insurance, in case of fluctuations in income. In a field experiment among traditional microfinance clients and larger collateralized borrowers in Bangladesh, we randomly assign the option to delay up to 2 monthly repayments at any point during a 12-month loan cycle. The flexible contract leads to substantial improvements in the traditional microfinance clients' business outcomes, driven by borrowers in the upper tail of the distribution. In addition, we find a significant impact on socio-economic status, combined with lower default rates. We show theoretically and empirically that these effects are induced by an increase in entrepreneurial risk taking, implying that the primary mechanism is insurance provision. Repayment flexibility also attracts less risk-averse borrowers interested in business expansion. At the same time, the effects for the larger loan are much more modest. Our findings suggest that lack of insurance is an important constraint for small firms but that a simple financial product that increases repayment flexibility can be an effective tool for enabling enterprise growth. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Donghua University (Natural Science Edition) is the property of Journal of Donghua University (Natural Science) Editorial Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

A company's long-term planning is essential for sustainable business growth and success, especially in the dynamic and competitive insurance industry. This study aims to evaluate the company's feasibility in achieving the desired net profit target based on analysis of current and projected financial data, industry analysis, and conformity with the assumptions and strategic initiatives outlined in the company's long-term plan. The research method used was qualitative. The results show strong growth in the company's key financial metrics. Gross written premium (GWP) is projected to increase from IDR 37.6 trillion in 2024 to IDR 54.5 trillion in 2029 at a compound annual growth rate (CAGR) of 8%. This growth is driven by strategic initiatives focused on market expansion, particularly in the property insurance and credit insurance business lines. Net profit is projected to increase from Rp3.3 trillion in 2024 to Rp6.1 trillion in 2029 at a CAGR of 13.2%, due to improved operational efficiency. The company's initiatives in implementing best practices and streamlining operations will lower its expense ratio from 20.8% in 2024 to 20.4% in 2029. The implications of this study provide strategic insights for insurance company management in formulating long-term policies aligned with market growth and operational efficiency. By aligning strategic initiatives and long-term financial planning, companies can be better prepared to face challenges and capitalize on future opportunities, thereby supporting long-term sustainability and profitability. [ABSTRACT FROM AUTHOR]

Research summary Policy implications Although society benefits when people with criminal records are employed, employers are reluctant to hire them. Can we diminish this reluctance with direct incentives that reduce the cost of employing record‐holders or that compensate for the associated risk? If so, will the beneficial effects of incentives emerge under traditional hiring, where job applicants disclose criminal history information at the application stage, and under Ban‐the‐Box, where they do not? To answer these questions, we conducted two preregistered experiments with a national sample of hiring decision‐makers (n = 1,000). The first was a conjoint analysis where participants chose between applicants who randomly varied on eight attributes, including criminal record (n = 13,998 choices). It corresponded to traditional hiring, where applicants’ criminal records are available at the outset. The second experiment involved a series of picture‐based factorial vignettes depicting tentatively hired employees later discovered to have records (n = 3,989 decisions). It approximated Ban‐the‐Box. In both experiments, a $2,400 tax credit and $25,000 insurance against losses from employee dishonesty reduced participants’ reluctance to hire record‐holders. Rehabilitation certificates also had beneficial effects under Ban‐the‐Box.Across two experiments, we found that a $2,400 tax credit and $25,000 insurance both reduced participants’ reluctance to hire record‐holders; they did so under traditional hiring and Ban‐the‐Box, and they did so regardless of whether applicants had misdemeanor or felony convictions. The clear policy implication is that employers should receive both incentives. Two federal programs, the Work Opportunity Tax Credit and the Federal Bonding Program, currently offer similar incentives, but neither program is used widely. Our findings indicate that steps should be taken to increase their use and to expand them. Because rehabilitation certificates were also helpful for getting record‐holders hired, steps should be taken to increase their use as well. [ABSTRACT FROM AUTHOR]

This paper explores the effects of bank lending shocks on the export behavior of Spanish firms. For that purpose, we combine data on exports at the firm‐product‐destination level with a matched bank‐firm dataset incorporating information on the universe of corporate loans from 2002 to 2013. Armed with this dataset, we identify bank‐year specific credit supply shocks and estimate their impact on firms' exports at the product‐destination level. According to our estimates, credit supply shocks have sizable effects on both the intensive margin (amount exported) and the extensive margin of trade (decision to export). [ABSTRACT FROM AUTHOR]

The public's confidence in insurance companies has been damaged by state-owned insurance companies' inability to pay claims. The purpose of this research is to investigate how financial risk affects business performance and how hedge accounting mitigates that influence. This study uses a quantitative approach. The analysis makes use of secondary data from 2019 to 2022 from insurance firms' annual reports. Both moderated regression analysis (MRA) and multiple linear regression analysis are used in this investigation. The findings show that return on assets (ROA) is significantly and negatively impacted by credit risk. Return on assets is unaffected by market, insurance, liquidity, and operational risks. The MRA analysis demonstrates how hedge accounting can increase the impact of risk associated with credit and insurance returns on assets. Hedge accounting, however, has no effect on how much market, operational, and liquidity risk affect return on assets. [ABSTRACT FROM AUTHOR]

We identify major drivers of the demand for credit insurance, using a worldwide survey among banking executives in the structured commodity trade finance business. Our results show that a bank's propensity to purchase insurance increases in its experience and expertise with the product, the impact of insurance coverage on its balance sheet, the risk of the underlying transaction, as well as the intensity of broker relationships. Other factors, such as the size of the commodity trade finance portfolio, the competitiveness of the insurance price, and the risks arising from commodity price volatility, seem to be of lesser relevance. [ABSTRACT FROM AUTHOR]

Collective action is important in ameliorating the negative externalities in agriculture to promote household food security (HFS). This study explored the effects of efficiency and livelihood collective action initiatives (CAIs) on HFS along the pathways of production and income. The efficiency CAIs pursue efficiency-enhancing collective activities including input sourcing and output marketing. The livelihood CAIs engage in household livelihood and resilience enhancing collective activities such as provision of credit and informal insurance, pooling savings and acquisition of assets. A multinomial endogenous treatment effects (METE) model and an ordered probit model were employed on cross-sectional data drawn from 532 households from Murang'a County in central Kenya. The results revealed significant differences in HFS between the efficiency and livelihood CAIs. The differences were accounted for by the variations in household and organizational characteristics that determine the capacity to leverage HFS benefits along the pathways of production and income. Both efficiency and livelihood CAIs showed a positive significant effect on HFS through production. The results further showed that income positively influenced HFS among the livelihood members contrary to efficiency CAIs that showed negative HFS effects. The HFS across the combined pathways of income and production was lower for the efficiency CAIs than the livelihood CAIs. This was mainly due to the trade-off income effects exhibited by the former and the synergies accrued from income and production on the latter. The findings suggest that the overall performance of both efficiency and livelihood CAIs in leveraging HFS from joint income and production remains tentative. Therefore, a one-size-fits-all collective action promotional policy and program design approaches for improved HFS outcomes are inadequate. The study suggests a portfolio of context-specific collective action policies and interventions that match the differences between the efficiency and livelihood CAIs and their links to HFS. The policies would confer potential synergies, spillover effects and complementarities in strengthening the synergies while mitigating the trade-offs along the income and production pathways between the efficiency and livelihood CAIs. There is a need to enhance access to information, extension and advisory services and ICT among the members of the livelihood CAIs to improve production. It is important to incentivize the non-farm livelihood-enhancing economic activities among the livelihood members to fill the household food gaps arising from low production. It is also important to establish collective action funds and micro-credit schemes with affordable interest rates. This would help to tap the opportunities for credit sourcing and pooling savings among the livelihood members while promoting collective input sourcing and output marketing among the efficiency CAIs. [ABSTRACT FROM AUTHOR]

Index‐based microinsurance is a promising risk management tool for smallholder farmers. Recently, several mobile‐delivered insurance schemes have entered the market. Depending on the degree of digitisation of the product, farmers can learn about the insurance, register, pay premiums and receive payouts via a mobile phone. As cell phone usage and network coverage constantly increase, digitally enabled insurance distribution may overcome previous barriers for insurance adoption. Still, farmers' preferences for these products remain largely unknown. We address this knowledge gap by means of a discrete choice experiment applied to 499 maize farmers in Mali. The experiment presents an easy‐to‐understand multi‐peril crop insurance linked to a greenness index. It focuses on attributes related to the distribution channel and product design. Using mixed logit models, we find that the insurance attributes enabled by mobile‐delivery are attractive to farmers. Product bundles that include mobile‐delivered weather information and agricultural advice in addition to the insurance policy or credit access increase the likelihood of farmers taking out insurance. Similarly, recommendations from fellow farmers increase interest in the insurance product. The results are highly relevant for future product improvements that are needed to increase adoption rates and ultimately realise the loss‐hedging potential of microinsurance. [ABSTRACT FROM AUTHOR]

This paper identifies the dimensions of international trade in services that promote export product diversification in an unbalanced panel of 48 countries in Sub-Saharan Africa (SSA) over the period 2005–2019. Using the two-step system Generalized Methtod of Moments (GMM), the results show that tourism, total services exports, export in transport services, travel services, insurances services, financial services, use of licenses services and other business services promote export product diversification in SSA. Policy makers can make commercial services export an important lever for export products diversification by adopting policies and strategies to develop and orient the commercial services towards more efficient and high value-added services. [ABSTRACT FROM AUTHOR]

Fraudulent activities especially in auto insurance and credit card transactions impose significant financial losses on businesses and individuals. To overcome this issue, we propose a novel approach for fraud detection, combining convolutional neural networks (CNNs) with support vector machine (SVM), k nearest neighbor (KNN), naive Bayes (NB), and decision tree (DT) algorithms. The core of this methodology lies in utilizing the deep features extracted from the CNNs as inputs to various machine learning models, thus significantly contributing to the enhancement of fraud detection accuracy and efficiency. Our results demonstrate superior performance compared to previous studies, highlighting our model’s potential for widespread adoption in combating fraudulent activities. [ABSTRACT FROM AUTHOR]

Copyright of Revista Româna de Dreptul Muncii is the property of Wolters Kluwer Romania and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study analyses the role of trade credit insurance and the insuring strategy of the retailer and the manufacturer in a capital-constrained supply chain with one retailer, one manufacturer, and one insurer. We model the interaction among these three participants as a two-level Stackelberg game and explore their operational and financial decisions. We find that trade credit insurance is adopted when the manufacturer's loss aversion is high or the retailer's initial capital is low. The adoption of trade credit insurance improves the order quantity of the retailer, the performance of each supply chain participant, and supply chain efficiency. However, it also increases the bankruptcy risk of the retailer and the instability of the entire supply chain. In addition, the application of trade credit insurance by the manufacturer alone is more beneficial to the manufacturer, insurer, and entire supply chain as it creates better performance for them. Conversely, the purchase of trade credit insurance by the retailer is more desirable to the retailer as it yields not only a higher profit but also a lower bankruptcy risk. [ABSTRACT FROM AUTHOR]

The article provides an overview of the Australian insurance industry's efforts to address customer disputes and enhance their products and services. The Australian Financial Complaints Authority (AFCA) has observed a 24% decrease in life insurance complaints in the 2022-23 period, although challenges such as premium changes and claim delays persist. The industry has made substantial investments to adhere to the new Life Insurance Code of Practice, resulting in a reduction in complaints. However, general insurance complaints have increased by 50%, primarily due to claim delays. The article also emphasizes the difficulties faced by insurers in responding to natural disasters and the ongoing need for improvements in claims handling and customer service. The leading sources of complaints in the life insurance sector, according to the Australian Financial Complaints Authority, are income protection policies, funeral plans, term life policies, and total and permanent disability policies. The most common issue raised by complainants is misleading information about products or services. While insurers may be receptive to complaints, they are crucial for customers and can help ensure accountability within the industry. [Extracted from the article]

Because of many firms' lack of collateral, banks have imposed loan limits as a form of risk-control regulations of bank financing. In response, loan insurance has emerged as a useful instrument to lift loan limits. To study the joint value of bank loans and loan insurance, this article investigates a supply chain composed of one supplier and one capital-constrained buyer who takes out a bank loan and potentially purchases loan insurance. The analysis reveals that both the supplier and the buyer can benefit from the bank financing with loan insurance in an insurance-cooperation region wherein the supplier is willing to reduce the wholesale price to entice the buyer to purchase insurance. Further still, in the insurance-cooperation region, worse contract terms of the bank loan benefit the supplier, whereas worse policy terms of loan insurance help the buyer. Such benefits can lead to a higher order quantity than the capital-abundant one and partially coordinate the entire supply chain. However, when production cost is low, the supplier and the buyer can encounter a Stackelberg prisoner's dilemma, in which both firms no longer cooperate with each other, and both are worse off. Nevertheless, a government subsidy for the insurance premium can not only reduce the Stackelberg prisoner's dilemma, but also improve the social welfare although it is not always optimal for the government to provide that subsidy. The main qualitative results are robust in a variety of extensions. This paper was accepted by Jayashankar Swaminathan, operations management. Funding: The first author acknowledges support from the National Natural Science Foundation of China (NSFC) [Grant 72171162] and the Humanity and Social Science Youth Foundation of Ministry of Education of China [Grant 20YJC630148], and the second author acknowledges support from the NSFC [Grant 72232001]. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4827. [ABSTRACT FROM AUTHOR]

Utilization technology in sector industry non-bank finance in Indonesia is increasingly widespread, including in the guarantee credit of state-owned companies. The company uses System Application Guarantee for transaction guarantee credit with produce Certificate Guarantee as proof of approval. The request can be active in the context of the COVID-19 pandemic and the Indonesian government's efforts to implement the company's National Economic Recovery (PEN) program guarantee. Implementation feature sign hand and digital stamp on the System Application PEN underwriting allows provision of document Guarantee Certificate in the form of legal and supportive softcopy restrictions contact physique during a pandemic. Study This aim is to measure the successful implementation features of the success models by Delone and McLean and analyze the connection between variables in research. The benefits cover assessment, evaluation, and strategy-based results evaluation using feature sign hand and digital stamp. Delone and McLean's original model was modified to eliminate variable intention to use. The research was conducted by analyzing the results of questionnaires from 108 officials' user systems throughout Indonesia. Process of data analysis using the method of Partial Least Square with device SMARTPLS software. Research results prove that quality systems will influence the satisfaction of future users who will be influential to benefit clean from the feature sign hand and digital stamp on the System Application PEN Guarante. [ABSTRACT FROM AUTHOR]

This article explores the significance of trade credit insurance in supporting international trade, particularly during times of uncertainty. It emphasizes the positive impact of international trade on economic growth, job creation, poverty reduction, and technological advancement. The article also highlights key trends in international trade, such as the increasing trade volume and the growing influence of developing countries. It specifically focuses on India's integration into the global trade system and the substantial growth of its exports. The article concludes by underscoring the role of trade credit insurance in mitigating risks associated with international trade and supporting exporters. It discusses the role of export credit agencies (ECAs), with a focus on India's ECGC Limited, which offers credit insurance covers to enhance the competitiveness of Indian exports. The article also emphasizes the growth and market share of various insurers in the credit insurance segment in India. It underscores the importance of credit insurance in managing risks and promoting economic resilience, particularly during times of global transition and uncertainty. The Indian government has implemented measures to boost exports and support the expansion of the credit insurance sector. [Extracted from the article]

In developing countries like Bangladesh, foreign capital inflows, such as remittances, are a vital source of funds that can bridge the domestic investment gap. Previous empirical results from developing countries show that remittances are widely consumed and seldom used for investment purposes. Therefore, the objective of this study is to identify the link between remittances and investment at the household level in Bangladesh. Based on a large-scale and nationally representative cross-sectional secondary data set of the Bangladesh Bureau of Statistics and employing the ordinary least square (OLS) regression model, this study helps to explore the link between remittances and investment at the household level in Bangladesh. The result of this study reveals that remittances positively affect the housing, land, agriculture, business, and valuable investment decisions at the household level, and significantly impact various types of investment. Therefore, it can be said that in the least developed countries like Bangladesh, remittance does act as credit insurance and works as a risk-spreading strategy to secure and increase income and acquire capital for investment. The demographic characteristics of the household head, such as gender and marital status, have a significant impact on household investment. [ABSTRACT FROM AUTHOR]

The US Congress uses economic and budgetary projections, cost estimates for proposed legislation, and other analyses provided by the Congressional Budget Office (CBO) as part of its legislative process. CBO makes assessments based on an understanding of federal programs and revenue sources, reading the relevant research literature, analysis of data, and consultation with outside experts—and often relies on economic research. This article begins with a discussion of the role of the Congressional Budget Office and then discusses how economists could conduct research that would help inform the Congress by improving the quality of the analysis and parameter estimates that CBO uses. It gives overall context and specific examples in seven areas: credit and insurance, energy and the environment, health, labor, macroeconomics, national security, and taxes and transfers. [ABSTRACT FROM AUTHOR]

This paper examines whether and how capital age influences trade credit extended by suppliers. We find that firms with older capital are associated with a reduction in trade credit offered by suppliers, which is consistent with the view that vintage capital, with outdated technology, is detrimental to firms. Employee outside opportunity, labour mobility and organisational capital are important factors that moderate the association between capital age on trade credit. Our findings are not driven by specific industry sectors or periods and remain robust to alternative measures of trade credit and to endogeneity concerns. In addition, we show evidence that shareholders view vintage capital as value‐destructive. In sum, this study reveals that risk exposure associated with capital age matters for corporate trade credit decisions. [ABSTRACT FROM AUTHOR]

This study addresses how participation in the Federal crop insurance program influences agricultural loan delinquencies. To achieve this objective, we use 1994–2015 county‐level panel data for corn production in the Midwestern United States (US). Traditional linear fixed effect (FE) models, instrumental variable‐based FE estimation, and several robustness checks are used in the empirical analysis. Estimation results suggest that counties with higher levels of crop insurance participation tend to have statistically lower rates of agricultural loan delinquency. This is evidence that the US crop insurance program helps reduce financial stress and facilitates the continued viability of the agricultural credit system. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic generated diverse impacts and responses in agricultural value chains worldwide. Cocoa is a key crop for Ecuadorian exports, and the analysis of effects the pandemic had on value chain actors contributes to the understanding of their individual capacities to coping with a major shock. The purpose of this study was to assess the number and severity of impacts and responses implemented by two links in the cocoa value chain to the pandemic, based on a survey of 158 cocoa farmers and 52 cocoa intermediaries from the main cocoa-producing provinces of the northern coast of Ecuador in 2021. Surveyed farmers and part of the intermediaries form part of the sustainability program of a large Swiss chocolate manufacturer. The impacts and responses reported were grouped into seven resources according to the Activity System Approach. Then, a comparison between groups was applied using the Wilcoxon rank sum test for nonparametric data, determining the most severe impacts and effective resilience responses among the actors. The results reveal that farmers and intermediaries were similarly affected by the pandemic, reporting 21 and 16 negative impacts, respectively. Farmers experienced a higher number and severity of impacts on financial and social resources, while intermediaries on human and material resources. The strongest impact was the loss of sales, reported by 65% of farmers and 58% of intermediaries. Farmers implemented more social responses that they judged highly effective, while intermediaries implemented more human responses that they judged highly effective. Public policy should enhance the social resources of farmers by strengthening their associativity and the capacities of their members, as mechanisms to mitigate their vulnerability to future health and climate crises. The financial resources of both actors should be protected through public credit and agricultural insurance. [ABSTRACT FROM AUTHOR]

We revisit the link between interest rates and corporate bond credit spreads by applying Rigobon’s (2003) unique heteroskedasticity-based identification methodology to their interconnected dynamics through a bivariate VAR system. This different approach allows us to account for simultaneity issues and use this framework to test the various possible explanations for the credit spread – interest rate relation that have been proposed by the literature over the years. We find that credit spreads do indeed respond negatively to interest rates, a result consistent with Merton’s (1974) structural model. This negative relation is robust to macroeconomic shocks, market uncertainty, business cycles, different sample periods, bond callability, and bond ratings. We also find the magnitude of the negative relation to be larger for high-yield bonds than for investment-grade bonds, and are able to rule out the option-like feature of callable bonds proposed by Duffee (1998) as the main driver of the negative nature of the relationship. These results have important portfolio and risk management implications. [ABSTRACT FROM AUTHOR]

The book "Distress in the fields: Indian agriculture after economic liberalization" provides an extensive review of agricultural policy in India following the country's economic liberalization in 1991. The book examines various aspects of agriculture, including land and agrarian relations, investment and expenditure, agricultural trade, costs, profits, and incomes, credit and insurance, and agricultural marketing and food security. The authors argue that while capitalist development in agriculture has occurred, economic liberalization has led to agrarian distress and entrenched inequality. The book also highlights the limitations of the economic ideology that underpins agricultural policy in India. [Extracted from the article]

Purpose: Focusing on micro-level indicators, we investigate financial inclusion levels in rural China, examining its determinants and impact on household welfare. We construct a financial inclusion index of four essential financial services: savings, digital payments, credit and insurance. We identify factors influencing financial inclusion among Chinese rural households and assess the effects of financial inclusion on household welfare. Design/methodology/approach: With the entropy method, we use data from the 2019 China Household Finance Survey to assess financial inclusion levels in rural China. Determinants and their impact on welfare are analyzed through probit and ordinary least squares models, respectively. Propensity scoring matching is applied to address potential endogeneity. Findings: We reveal that rural households exhibit limited usage of formal financial services, with notable regional disparities. The eastern region enjoys the highest financial inclusion and the central region lags behind. Household characteristics such as family size, education level of the household head, income, employment status and financial literacy significantly influence financial inclusion. Financial inclusion positively impacts household welfare as indicated by household consumption expenditure. The use of different types of financial services is crucial with varying but significant effects on household welfare. Originality/value: This study offers valuable insights into China's rural financial inclusion progress, highlighting potential barriers and guiding government actions. [ABSTRACT FROM AUTHOR]

The article focuses on smart techniques in actuarial valuation for Takaful products, emphasizing the role of actuaries in ensuring pricing aligns with Shariah principles, along with highlighting the importance of education and transparency in promoting Takaful.

We analyze how individual risk aversion changes in response to shocks in an agrarian setting, and the role of changes in yields and prices as two potential channels. To do so we specify a theoretical model that describes temporal alterations in risk aversion. Empirically, we test the model's proposition by combining individual‐level panel data with historical rainfall data for rural Thailand and Vietnam. We find that rainfall shocks increase individuals risk aversion, whereby the largest effects are observed among households that are net buyers of food commodities. Regarding potential channels, only prices seem to explain–and even then just to a very small extent–the increase in net buyers' risk aversion. Our findings imply that shocks can increase risk aversion, and, in the absence of functioning credit and insurance markets, may ultimately lead to decisions that perpetuate poverty. [ABSTRACT FROM AUTHOR]

This study has employed Bayesian Model Averaging (BMA) to identify the most suitable model for assessing the eligibility of Vietnamese coffee farmers for bank loans, effectively avoiding overfitting and ensuring that only the most crucial variables were considered in the analysis. Findings from the study indicate that factors such as ethnicity, labor, yield, land ownership, and willingness to participate (WTP) in coffee insurance significantly influenced the farmers' eligibility for bank loans. Moreover, the study suggests that banks and insurance companies should also take into account additional factors, such as socio-economic context, household size and composition, land ownership, and risk-sharing programs, to enhance access to credit. With this valuable information, banks can forge partnerships with insurance companies to craft highly effective loan programs and insurance products tailored to Vietnamese farmers' unique needs. The simplicity, practicality, and strong predictive ability of the model chosen by BMA make it a valuable tool for guiding policy decisions. [ABSTRACT FROM AUTHOR]

The agricultural extension system in India has the daunting task of serving about 146.45 million farm families. Public extension systems comprising KVKs, ATMA, State Line Departments, SAUs and ICAR Institutes have been playing a pivotal role in extending extension services; of late, private players like input companies, credit and insurance firms, Corporate Social Responsibility units, NGOs, farmers' associations (FBOs/FPOs) and commodity boards (Rubber, Coffee, etc.) have made a significant impact in this area. Despite such a vast network of public and private extension agencies, there is a wide gap in service delivery and extension education interventions. All these extension agencies have their strength and weaknesses but also hold promising dynamism for future challenges. As agricultural extension will be a very important determinant of future agricultural growth, the assessment of SWOT analysis of different extension agencies engaged in delivering extension services in India is imperative. [ABSTRACT FROM AUTHOR]

This work aims to identify the optimal rating scale for the rating system used by a credit insurance company subjected to the Solvency 2 regulatory framework. To do so, we apply and further develop a previously published result concerning the rating scale properties. The partition underlying a given rating scale must satisfy two needs of the rating model user: efficient information synthesis and stable semantics. Those needs cannot be addressed together in general. Nonetheless, it is possible to specify the partition as a linear combination of the two choices that meet one requirement each. We numerically show that, in general, the optimal combination is nontrivial under realistic assumptions and is mainly driven by the target return fixed by the company's stakeholders and the debtors' probability of default distribution. [ABSTRACT FROM AUTHOR]

This paper attempts to illustrate the primacy of the Shari’a-compliant murabaha transaction as a means of inconvertibility loss recovery by Islamic political risk insurers. In practical terms, the risk most likely to occur in an underdeveloped Muslim country is the risk of the local currency becoming inconvertible because of a certain action or inaction by the authorities of the host country which is the destination of an export trade transaction, or a foreign direct investment covered under a political risk insurance policy. The political risk insurance (PRI) operator most concerned with the subject of this paper is the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group. Where the PRI operator is established within the auspices of a lending agency which lends in local currency, and provided that the necessary legal arrangements are in place, the PRI’s local currency holdings could be passed on to the lending agency in the host country and the foreign currency equivalent thereof paid over to the PRI operator at its head office. In countries where a lender is not extending local currency financing and a speedy economic recovery is not expected, an attractive alternative for a PRI operator, as the authors argue, is the utilization of the local currency in murabaha transactions. PRI operators’ apprehension about the risk of inconvertibility finds expression in denial of the inconvertibility coverage altogether. Where this is not the case, a PRI operator may impose recovery ceilings, demand the expiry of extended waiting periods, as well as compliance with a variety of other conditions prior to recovery. This paper argues that such measures are self-defeating. A Shari’a-compliant PRI operator is necessarily established to provide coverage against commercial and non-commercial risks in poor Muslim countries. To deny or restrict inconvertibility risk coverage in such countries is unacceptable. Murabaha is a panacea for currency inconvertibility: it is the most popular form of Islamic financing in the world, it is easy to structure, and its profits are almost certainly rewarding. While the risk of non-payment of the price by overseas buyers of Muslim country exports is minimal, risks associated with murabaha could be further minimized by means of export credit insurance coverage by local export promotion agencies. [ABSTRACT FROM AUTHOR]

The study of top economic growth with the goal of Sustainable Development Goals (SDGs) has become an important issue in the world, and scholars have analyzed high-quality economic development(HED) influencing factors from many perspectives, but there are few studies on green finance(GF) and high-quality economic development(HED). we examine the logical link between green financing and high-quality economic development, as well as the transmission mechanism behind this relationship. Using data from 30 Chinese regions from 2011 to 2021, our empirical study shows that green financing may improve high-quality economic development. Several robustness tests show that this association exists. Furthermore, our findings indicate that more robust government governance and market synergy may promote green finance for high-quality economic development. Green finance can enhance high-quality economic development by minimizing resource mismatch and encouraging green technology advancement. Simultaneously, green finance for high-quality economic development is significantly heterogeneous. Green credit and green insurance are important forms of support for promoting high-quality economic development, with significantly higher impacts in the eastern regions than in the central and western regions. Our research offers policymakers insights on encouraging green finance growth in China. [ABSTRACT FROM AUTHOR]

Public export credits and trade insurance require a global framework of institutions, rules and regulations to avoid subsidies and a race to the bottom. The extensive modernisation of the Arrangement on Officially Supported Export Credits (Arrangement) of the Organisation for Economic Co‐operation and Development intends to re‐level the playing field. This Practitioner Commentary describes the demand for adequate government interventions, considers the need for the reform and discusses key aspects of the new Arrangement. We argue that there is a breakthrough in several important areas such as tenors, repayment terms and green finance. However, we also find that the modernisation falls short in areas such as the interplay between different rulebooks, pre‐shipment instruments' regulations and climate action. [ABSTRACT FROM AUTHOR]

Purpose: Research on financial inclusion (FI) in Islamic countries has evolved and gained prominence. This study aims to construct an extensive multidimensional FI index to ascertain the level of inclusion and trends in the Middle East/North Africa (MENA) countries. Additionally, this study examines the potential role of Islamic finance in improving access to financial services. Design/methodology/approach: Data for the study were collected from databases covering MENA countries for the period 2010–2020. An inclusion index has been constructed using the entropy method. Findings: Key findings indicate that the overall FI has improved in Islamic countries. However, it should be noted that all MENA countries fall within the low or medium levels of the inclusion index. It was observed that insurance access and penetration savings were poor in the Islamic MENA countries. Social implications: The authors recommend that policymakers focus on insurance access and saving behaviour in their respective countries. Based upon these observations, policymakers should promote the economic benefits of Islamic finance, which will help improve FI and economic development in Islamic countries. This study emphasises the necessity of policy framework reform to provide Islamic financial services to the poorest in society at low or no cost for better economic benefits. Originality/value: Most studies tend to overlook important indicators such as insurance, savings and credit penetration while calculating the index. These indicators add value to the existing literature. The majority of prior studies used United Nation Development Programme methodology or principal component analysis for Inclusion Index measurements. The adoption of the entropy weighting method is the novelty of this study. [ABSTRACT FROM AUTHOR]

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Purpose: The digital revolution has changed consumer–service provider interaction, spawning a new generation of FinTech. This paper analyzes consumers' reactions to artificial intelligence (AI) (vs human) decisions. Design/methodology/approach: The authors tested their predictions by conducting two experimental studies with FinTech consumers (n = 503). Findings: The results reveal that consumers' responses to AI (vs human) credit decisions depend on the type of credit product. For personal loans, the rejection by an AI provider triggers higher levels of satisfaction compared to a credit analyst. This effect is explained via the perceived role congruity. In addition, the findings reveal that consumers' rejection sensitivity determines how they perceive financial services role congruity. Originality/value: To the best of the authors' knowledge, this research is the first to jointly examine AI (vs human) credit decisions in FinTech and role congruity, extending prior research in the field. [ABSTRACT FROM AUTHOR]

The adoption of advanced agricultural technologies in Sub‐Saharan Africa remains disappointingly low, particularly among the millions of poor smallholders who account for most of the agricultural production. We conducted a randomized control trial in Ghana to assess the impact of easing drought‐risk constraints in the agricultural credit market, by bundling joint liability agricultural loans with index insurance, on smallholder farmers' agricultural technology adoption decisions. In the micro‐insurance treatment, any index insurance payouts go directly to farmers, while in the meso‐insurance treatment, payouts are issued to banks to be used to expunge farmers' debts. We find evidence that bundling joint liability lending with micro‐insurance increases adoption of fertilizer. [ABSTRACT FROM AUTHOR]