Centro de Documentacion de Fundación MAPFRE - Do time preferences explain low health insurance take-up?

Notes: Sumario: Low insurance take-up in low-income populations is not easily explained by the standard single-period expected utility model of insurance that overlooks the relevance of time preference when liquidity is constrained. We design field survey instruments to elicit quasi-hyperbolic time preferences, as well as prospect theory risk preferences, and use them to examine whether time preferences explain health insurance behavior of low-income Filipinos. Consistent with theory, those with stronger parameterized time preference are less likely to insure and the partial association is most pronounced at low wealth where liquidity is most likely to be constrained. Among those with better understanding of insurance, lower take-up is also associated with present bias. We do not find that insurance is significantly associated with risk preferences.

Related records: En: The Journal of risk and insurance. - Nueva York : The American Risk and Insurance Association, 1964- = ISSN 0022-4367. - 05/12/2022 Volumen 89 Número 4 - diciembre 2022 , p. 951-983Materia / lugar / evento: Seguro de salud Mercado de seguros Cálculo actuarial Other categories: 344.1

Rights: La copia digital se distribuye bajo licencia "Attribution 4.0 International (CC BY 4.0)"

‌ See issue detail