Insuring Well‐Being? Buyer's remorse and peace of mind effects from insurance
We estimate the causal effects of index insurance coverage on subjective well‐being among livestock herders in southern Ethiopia. By exploiting the randomized distribution of discount coupons and information treatments to instrument for the purchase of index‐based livestock insurance, and three roun...
| Autores principales: | , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2019
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/107373 |
| _version_ | 1855528562124128256 |
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| author | Tafere, Kibrom Barrett, Christopher B. Lentz, Erin C. |
| author_browse | Barrett, Christopher B. Lentz, Erin C. Tafere, Kibrom |
| author_facet | Tafere, Kibrom Barrett, Christopher B. Lentz, Erin C. |
| author_sort | Tafere, Kibrom |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We estimate the causal effects of index insurance coverage on subjective well‐being among livestock herders in southern Ethiopia. By exploiting the randomized distribution of discount coupons and information treatments to instrument for the purchase of index‐based livestock insurance, and three rounds of panel data, we separately identify ex ante welfare gains from insurance that reduces risk exposure and ex post buyer's remorse effects that may arise after the resolution of uncertainty. We find that current insurance coverage generates subjective well‐being gains that are significantly higher than the buyer's remorse effect of an insurance policy that lapsed without paying out. Given the positive correlation in insurance purchase propensity over time, failure to control for potential buyer's remorse effects can bias downward estimates of welfare gains from current insurance coverage. |
| format | Journal Article |
| id | CGSpace107373 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1073732024-05-01T08:17:54Z Insuring Well‐Being? Buyer's remorse and peace of mind effects from insurance Tafere, Kibrom Barrett, Christopher B. Lentz, Erin C. households insurance livestock poverty We estimate the causal effects of index insurance coverage on subjective well‐being among livestock herders in southern Ethiopia. By exploiting the randomized distribution of discount coupons and information treatments to instrument for the purchase of index‐based livestock insurance, and three rounds of panel data, we separately identify ex ante welfare gains from insurance that reduces risk exposure and ex post buyer's remorse effects that may arise after the resolution of uncertainty. We find that current insurance coverage generates subjective well‐being gains that are significantly higher than the buyer's remorse effect of an insurance policy that lapsed without paying out. Given the positive correlation in insurance purchase propensity over time, failure to control for potential buyer's remorse effects can bias downward estimates of welfare gains from current insurance coverage. 2019-04 2020-03-04T09:01:49Z 2020-03-04T09:01:49Z Journal Article https://hdl.handle.net/10568/107373 en Limited Access Wiley Tafere, K., Barrett, C.B. and Lentz, E. 2019. Insuring Well‐Being? Buyer's remorse and peace of mind effects from insurance. American Journal of Agricultural Economics 101(3):627–650. |
| spellingShingle | households insurance livestock poverty Tafere, Kibrom Barrett, Christopher B. Lentz, Erin C. Insuring Well‐Being? Buyer's remorse and peace of mind effects from insurance |
| title | Insuring Well‐Being? Buyer's remorse and peace of mind effects from insurance |
| title_full | Insuring Well‐Being? Buyer's remorse and peace of mind effects from insurance |
| title_fullStr | Insuring Well‐Being? Buyer's remorse and peace of mind effects from insurance |
| title_full_unstemmed | Insuring Well‐Being? Buyer's remorse and peace of mind effects from insurance |
| title_short | Insuring Well‐Being? Buyer's remorse and peace of mind effects from insurance |
| title_sort | insuring well being buyer s remorse and peace of mind effects from insurance |
| topic | households insurance livestock poverty |
| url | https://hdl.handle.net/10568/107373 |
| work_keys_str_mv | AT taferekibrom insuringwellbeingbuyersremorseandpeaceofmindeffectsfrominsurance AT barrettchristopherb insuringwellbeingbuyersremorseandpeaceofmindeffectsfrominsurance AT lentzerinc insuringwellbeingbuyersremorseandpeaceofmindeffectsfrominsurance |