Socio-economic Impact Assessment of Livelihood Security in Agriculture, Animal Husbandry and Aquaculture on the Tsunami-hit Lands of Andaman

Indian subcontinent is highly vulnerable to major natural disasters such as earthquakes, cyclones, floods, droughts, landslides and bushfires. Tsunami, which is a recent addition to this list, had occurred in the early morning of 26th December 2004, after a massive earthquake of 9.2 magnitude on the Richter scale in Andaman & Nicobar islands, resulting in the submergence of large area of farmland, and subsequent drying up of water bodies. It caused moisture stress for the standing crops, livestock and fisheries and affected the livelihood of the people to a large extent. In this context, the present study has been carried out to make the socio-economic impact assessment of livelihood security in agriculture, animal husbandry and aquaculture on the tsunami-hit lands of Andaman. Data have been collected from 150 sample respondents and the survey has been conducted for two periods, pre-tsunami and post-tsunami. The results have indicated that tsunami has ravaged the households, standing crops, farm inputs such as seed, feed and implements, livestock and poultry population, their sheds, fish ponds, etc., thereby affecting the basic livelihood security of the people in Andaman. The rehabilitation measures taken by the government and NGOs have improved their livelihoods by reviving agriculture considerably in the subsequent years and by creating employment opportunities in various farm and non-farm activities. The paper has suggested creating profitable livelihood security to vulnerable sections of the society in the existing socio-economic penury with holistic intervention of the community, government and NGOs.Agricultural and Food Policy,

Why Don't People Insure Late Life Consumption: A Framing Explanation of the Under-Annuitization Puzzle

Rational models of risk-averse consumers have difficulty explaining limited annuity demand. We posit that consumers evaluate annuity products using a narrow "investment frame" that focuses on risk and return, rather than a "consumption frame" that considers the consequences for lifelong consumption. Under an investment frame, annuities are quite unattractive, exhibiting high risk without high returns. Survey evidence supports this hypothesis: whereas 72 percent of respondents prefer a life annuity over a savings account when the choice is framed in terms of consumption, only 21 percent of respondents prefer it when the choice is framed in terms of investment features.

Comparison Friction: Experimental Evidence from Medicare Drug Plans

Consumers need information to compare alternatives for markets to function efficiently. Recognizing this, public policies often pair competition with easy access to comparative information. The implicit assumption is that comparison friction—the wedge between the availability of comparative information and consumers’ use of it—is inconsequential because information is readily available and consumers will access this information and make effective choices. We examine the extent of comparison friction in the market for Medicare Part D prescription drug plans in the United States. In a randomized field experiment, an intervention group received a letter with personalized cost information. That information was readily available for free and widely advertised. However, this additional step—providing the information rather than having consumers actively access it—had an impact. Plan switching was 28 percent in the intervention group, versus 17 percent in the comparison group, and the intervention caused an average decline in predicted consumer cost of about $100 per year among letter recipients—roughly 5 percent of the cost in the comparison group. Our results suggest that comparison friction can be large even when the cost of acquiring information is small, and may be relevant for a wide range of public policies that incorporate consumer choice.