Valuing insurance against small probability risks: A meta-analysis

IF 1.6 3区 经济学 Q2 ECONOMICS
Selim Mankaï , Sébastien Marchand , Ngoc Ha Le
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引用次数: 0

Abstract

The demand for voluntary insurance against low-probability, high-impact risks is lower than expected. To assess the magnitude of the demand, we conduct a meta-analysis of contingent valuation studies using a dataset of experimentally elicited and survey-based estimates. We find that the average stated willingness to pay (WTP) for insurance is 87 % of expected losses. We perform a meta-regression analysis to examine the heterogeneity in aggregate WTP across these studies. The meta-regression reveals that information about loss probability and probability levels positively influence relative willingness to pay, whereas respondents’ average income and age have a negative effect. Moreover, we identify cultural sub-factors, such as power distance and uncertainty avoidance, that provided additional explanations for differences in WTP across international samples. Methodological factors related to the sampling and data collection process significantly influence the stated WTP. Our results, robust to model specification and publication bias, are relevant to current debates on stated preferences for low-probability risks management.

评估小概率风险保险:元分析
针对低概率、高影响风险的自愿保险需求低于预期。为了评估需求的规模,我们使用实验得出的数据集和基于调查的估计值,对或有估价研究进行了元分析。我们发现,投保意愿的平均值为预期损失的 87%。我们进行了元回归分析,以检查这些研究中总 WTP 的异质性。元回归结果显示,损失概率和概率水平信息对相对支付意愿有积极影响,而受访者的平均收入和年龄则有消极影响。此外,我们还发现了一些文化子因素,如权力距离和不确定性规避,这些因素为国际样本的 WTP 差异提供了更多解释。与抽样和数据收集过程相关的方法论因素对声明的 WTP 有显著影响。我们的研究结果不受模型规范和出版偏差的影响,与当前关于低概率风险管理的声明偏好的讨论相关。
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来源期刊
CiteScore
2.60
自引率
12.50%
发文量
113
审稿时长
83 days
期刊介绍: The Journal of Behavioral and Experimental Economics (formerly the Journal of Socio-Economics) welcomes submissions that deal with various economic topics but also involve issues that are related to other social sciences, especially psychology, or use experimental methods of inquiry. Thus, contributions in behavioral economics, experimental economics, economic psychology, and judgment and decision making are especially welcome. The journal is open to different research methodologies, as long as they are relevant to the topic and employed rigorously. Possible methodologies include, for example, experiments, surveys, empirical work, theoretical models, meta-analyses, case studies, and simulation-based analyses. Literature reviews that integrate findings from many studies are also welcome, but they should synthesize the literature in a useful manner and provide substantial contribution beyond what the reader could get by simply reading the abstracts of the cited papers. In empirical work, it is important that the results are not only statistically significant but also economically significant. A high contribution-to-length ratio is expected from published articles and therefore papers should not be unnecessarily long, and short articles are welcome. Articles should be written in a manner that is intelligible to our generalist readership. Book reviews are generally solicited but occasionally unsolicited reviews will also be published. Contact the Book Review Editor for related inquiries.
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