Why are some households so poorly insured?

Gathergood, John and Wylie, Daniel (2018) Why are some households so poorly insured? Journal of Economic Behavior and Organization . ISSN 0167-2681 (In Press)

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e explore empirically how households insure themselves against consumption volatility. We asked households how they would fund an unexpected emergency consumption expense equivalent to one month’s income. Answers reveal a range of consumption insurance mechanisms, including borrowing from credit markets and social networks. Despite this, more than one fifth of households have no plan to insure their consumption. The likelihood of non-insurance increases with poor financial literacy and is highest among households most at risk of experiencing a financial shock. Among these households we see large effects of poor financial literacy on non-insurance.

Item Type: Article
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > School of Economics
Depositing User: Blore, Mrs Kathryn
Date Deposited: 22 Aug 2018 14:35
Last Modified: 22 Feb 2020 04:30
URI: https://eprints.nottingham.ac.uk/id/eprint/53399

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