Do disaster experience and knowledge affect insurance take-up decisions?

• 成果类型: Article
• 署名作者: Cai, Jing; Song, Changcheng
• 署名单位: University of Michigan System; University of Michigan; National University of Singapore
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2016.08.007
• 发表日期: 2017
• 页码: 83-94
• 关键词: insurance; Take-up; game; experience; KNOWLEDGE

摘要

This study examines the effect of experience and knowledge on weather insurance adoption. First, we conduct insurance games with farmers, and find that the treatment improves real insurance take-up by 46%. The effect is not driven by changes in risk attitudes and perceived probability of disasters, or by learning of insurance benefits, but is driven by the experience acquired in the game. Second, we find that providing information about the payout probability has a strong positive effect on insurance take-up. Finally, when subjects receive both treatments, the probability information has a greater impact on take-up than does the disaster experience.