Background Uuncertainty and the Demand for Insurance against Insurable Risks
نویسندگان
چکیده
Theory suggests that people facing higher uninsurable background risk buy more insurance against other risks that are insurable. This proposition is supported by Italian cross-sectional data. It is shown that the probability of purchasing casualty insurance increases with earnings uncertainty. This finding is consistent with consumer preferences being characterised by decreasing absolute prudence.
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تاریخ انتشار 1998