Something in the Air: Pollution and the Demand for Health Insurance

• 成果类型: Article
• 署名作者: Chang, Tom Y.; Huang, Wei; Wang, Yongxian
• 署名单位: University of Southern California; University of International Business & Economics; Shanghai Jiao Tong University
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdy016
• 发表日期: 2018
• 页码: 1609-1634
• 关键词: DECISION-MAKING; Projection bias; weather; CHOICE; SALIENCE; BEHAVIOR; IMPACT

摘要

We find that daily air pollution levels have a significant effect on the decision to purchase or cancel health insurance in a manner inconsistent with rational choice theory. A one standard deviation increase in daily air pollution leads to a 7.2% increase in the number of insurance contracts sold that day. Conditional on purchase, a one standard deviation decrease in air pollution during the cooling-off (i.e. cost-free cancellation) period relative to the order-date level increases the return probability by 4.0%. We explore a range of potential mechanism and find the most support for projection bias and salience.