Subsidy Policies and Insurance Demand∗
نویسندگان
چکیده
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 dampen these effects by reducing attention to payouts. We estimate a demand model for policy simulations. Results suggest that the optimum subsidy scheme should be continuously adjusted based on the policy objective and on past subsidies and payouts.
منابع مشابه
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...
متن کاملExamining Subsidy Polices on Maize Production in Iran (Panel Data approach)
Among the agricultural important factors, inputs are the most significant in agricultural production. This article aimed to examine the impact of government subsidy policies on production of one of the most strategic products, namely on production of one of the most strategic products, namely maize, in Iran. To achieve this goal, panel data for the nine provinces of Iran's major producers of ma...
متن کاملAre tax subsidies for private medical insurance self-financing? Evidence from a microsimulation model.
This paper develops an empirical strategy to estimate whether subsidies to private medical insurance are self-financing in countries where public and private insurance coexist and the latter covers the same treatments as the former. We construct a simulation routine based on a micro-econometric discrete choice model that allows us to evaluate the impact of premium changes on the utilization of ...
متن کاملThe Tangled Web of Agricultural Insurance: Evaluating the Impacts of Government Policy
This paper examines how changes in major elements of the U.S. federal crop insurance program affect the structure of the agricultural insurance industry. We model interactions between farmers, insurance agents and insurance companies. Marginal changes in government policy (premium subsidy rate, A&O subsidy rate, and loading factor) affect the insurance premium rate, agent compensation rates, ag...
متن کاملA rmative Action as an Implementation Problem
Existing a rmative action policies fail because they generate new undesirable equilibrium outcomes. This paper re-designs a rmative action policies from the implementation perspective. It shows that some simple combinations of unemployment insurance and employment subsidy can selectively eliminate undesirable equilibrium outcomes. This class of policies is also the cheapest among all e ective p...
متن کامل