Insurance Demand Anomalies and Regulation

Policies and Insurance Demand

Many new products presumed to be privately beneficial to the poor have a high price elasticity of demand and ultimately zero take-up rate at market price. This has led governments and donors to provide subsidies to increase take-up, with the concern of trying to limit their cost. In this study, we use data from a two-year field experiment in rural China to define the optimum subsidy scheme that...

Subsidy Policies and Insurance Demand∗

Using data from a two-year randomized pricing experiment in China, we study the impact and design of subsidy policies for weather insurance. Results show that subsidies are effective in boosting demand in the short-run but not in the longer term. Exploring the channels, we show that while subsidies increase the direct and social effects of payout experiences by enlarging coverage, they also dam...

Catastrophe Insurance and the Demand for Deductibles

Financial Instability and Life Insurance Demand

The purpose of this research is to discuss Japanese financial instability and both private life insurance and public life insurance (Kampo) demand. At the same time, we also consider Kampo’s main role and what Kampo should be as an insurance service provider in the future. From empirically estimating private life insurance and Kampo demand functions using household-level data provided by the Po...

Bank Regulation and Deposit Insurance

The subject of government bank regulation is intimately intertwined with that of government deposit insurance. If the government is to insure bank deposits, it should also have some say in the risks that insured banks are allowed to take, otherwise it would leave itself wide open to unlimited potential losses. John H. Kareken (in this issue) comes close to arguing that banks without government ...