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Table 4 Modeling results from Heckman’s 2-step estimation procedure

From: Estimating farmers’ willingness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso

  Probit estimate (first-stage equation) OLS estimates (primary equation)
  Participation model Valuation model
Variable Coef. Std. Err. z -value Coef. Std. Err. t -value
Constant 1.101 0.921 1.20 4.656 4.846 0.96
Starting_bid −0.00016 0.00003 −4.74***    
Age (young adults)       
Middle age −1.372 0.554 −2.47**    
Elderly age −2.685 0.877 −3.06***    
Access_credit 0.276 0.003 3.18***    
Access_irrigation −2.431 0.988 −2.46**    
Cost_damage 0.318 0.146 2.17*    
Crop_diversity 0.235 0.091 2.57**    
Education (no formal)       
Primary education     0.981 0.429 2.29**
Secondary education     −0.265 0.429 −0.62
Tertiary education     −5.438 22.266 −0.24
Farming_expirience 0.027 0.013 2.08*    
Farm_size     0.889 0.389 2.28**
Gender     −0.727 0.365 −2.17**
Hazard_expirience 1.412 0.396 3.57***    
Income (low)       
Middle income 0.316 0.127 2.50** 0.087 0.020 4.31***
High income −0.595 0.440 −1.35 −0.322 0.262 −1.23
Knowlwdgeable_insurance 0.911 0.317 2.87***    
Knowledgeable_risk     0.582 0.230 2.53**
Rho (ρ) −0.224 0.274 −0.82    
Sigma (σ) 6.57 0.35 18.78***    
Lambda (λ) −0.147 0.182 −0.81    
Log-likelihood    −1944.5    
Obs.    267    235
  1. Significance of parameters *** <0.01, ** < 0.05, * < 0.10