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Table 5 Estimated model results for weather index insurance preferences

From: Small farmers’ preferences for weather index insurance: insights from Kenya

Variables Model (1)   Model (2)   Model (3)  
Mean parameters
ASC (1 = no insurance) − 7.54*** (1.72) − 9.53*** (2.46) 4.25 (3.93)
Premium rate (%) − 5.39*** (2.01) − 5.26*** (1.86) − 5.50*** (1.86)
Strike level
 − 20% − 0.16 (0.11) − 0.16 (0.11) − 0.15 (0.11)
 − 40% − 0.44*** (0.11) − 0.43*** (0.11) − 0.45*** (0.12)
 ± 10% − 0.01 (0.10) − 0.01 (0.10) − 0.01 (0.10)
 ± 20% 0.18* (0.10) 0.17* (0.10) 0.17* (0.10)
 ± 40% 0.20* (0.11) 0.19* (0.11) 0.21* (0.11)
Transparency (1 = weekly texts) 0.85*** (0.08) 0.86*** (0.08) 0.86*** (0.08)
Distance to station
 50 km − 0.27*** (0.07) − 0.26*** (0.07) − 0.27*** (0.07)
 20 km 0.08 (0.06) 0.07 (0.07) 0.08 (0.06)
Contracted party
 Small group 0.25*** (0.08) 0.26*** (0.08) 0.25*** (0.08)
 Large group − 0.33*** (0.09) − 0.33*** (0.09) − 0.33*** (0.09)
WII2014 × ASC    − 1.23 (1.51)   
WII2013 × ASC    − 1.89 (1.60)   
WIIbefore × ASC    2.67* (1.49)   
Satisfaction (scale: 1–5) × ASC      − 2.15* (1.12)
Risk-attitude (scale:1–10) × ASC      − 0.51*** (0.20)
Received WII training × ASC      − 3.22** (1.54)
Education × ASC      0.0004 (0.13)
Female × Education × ASC      0.30** (0.12)
Group membership × ASC      − 2.64** (1.25)
Off-farm occupation × ASC      − 2.61 (3.21)
Larger farm(1 = if \(\ge \bar{x}\)) × ASC      1.93* (1.14)
Std. deviation parameters
ASC 3.76*** (0.88) 5.03*** (1.32) 3.66*** (0.95)
Premium rate (%) 4.29*** (0.83) 0.20 (0.31) 0.16 (0.37)
Strike level
 − 20% 0.15 (0.37) 0.39 (0.25) 0.42* (0.23)
 − 40% 0.38 (0.24) 0.05 (0.25) 0.04 (0.25)
 ± 10% 0.07 (0.24) 0.21 (0.21) 0.10 (0.25)
 ± 20% 0.13 (0.24) 0.09 (0.38) 0.13 (0.26)
 ± 40% 0.15 (0.25) 0.62*** (0.09) 0.60*** (0.09)
Transparency (1 = weekly texts) 0.60*** (0.09) 0.45*** (0.11) 0.49*** (0.11)
Distance to station
 50 km 0.48*** (0.11) 0.30** (0.13) 0.24 (0.17)
 20 km 0.22 (0.16) 0.79*** (0.12) 0.81*** (0.12)
Contracted party
 Small group 0.78*** (0.12) 1.04*** (0.13) 1.03*** (0.12)
 Large group 1.00*** (0.12) 4.33*** (0.79) 4.33*** (0.83)
Log likelihood − 1490.76   − 1489.72   − 1474.11  
Chi-squared 279.12***   278.75***   240.55***  
  1. The number of observations in all three models is 6176. Coefficient estimates are shown with standard errors in parenthesis. The reference values for the effects-coded contract attributes are − 10% strike level, no text message, 5 km distance, and individual contract
  2. ***, **, * indicate statistically significant at the 1, 5, and 10% level, respectively
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