Subsidy Policies and Insurance Demand

• 成果类型: Article
• 署名作者: Cai, Jing; de Janvry, Alain; Sadoulet, Elisabeth
• 署名单位: University System of Maryland; University of Maryland Baltimore; National Bureau of Economic Research; University of California System; University of California Berkeley
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20190661
• 发表日期: 2020
• 页码: 2422-2453
• 关键词: take-up; experience; decisions; product

摘要

Using data from a two-year pricing experiment, we study the impact of subsidy policies on weather insurance take-up. Results show that subsidies increase future insurance take-up through their influence on payout experiences. Exploring mechanisms of the payout effect, we find that for households that randomly benefited from financial education, receiving a payout provides a one-time learning experience that improves take-up permanently. In contrast, households with poor insurance knowledge continuously update take-up decisions based on recent experiences with disasters and payouts. Combining subsidy policies with financial education can thus be effective in promoting long-run insurance adoption.