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

Agricultural and Food Economics

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

	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