Corpus ID: 34555630

The demand for insurance under limited trust: Evidence from a field experiment in Kenya

  title={The demand for insurance under limited trust: Evidence from a field experiment in Kenya},
  author={S. Dercon and J. Gunning and A. Zeitlin},
In spite of strong theoretical reasons to believe in the welfare-enhancing value of microinsurance products, demand for such products to date has been disappointingly low across a range of developing countries. In this paper we investigate the role of trust in the demand for indemnity insurance. First, we develop a theoretical model of insurance demand under limited trust to derive predictions for the way trust, risk aversion, and insurance premiums interact. Second, we test these predictions… Expand
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  • Nathaniel Hendren
  • Medicine, Economics
  • Econometrica : journal of the Econometric Society
  • 2013
This paper argues that private information, held by the potential applicant pool, explains rejections, and develops and testing a model in which agents may have private information about their risk, and applies this approach to three non-group markets: long-term care, disability, and life insurance. Expand
Selection in Insurance Markets: Theory and Empirics in Pictures
  • L. Einav, Amy N. Finkelstein
  • Economics, Medicine
  • The journal of economic perspectives : a journal of the American Economic Association
  • 2011
This graphical approach provides both a useful and intuitive depiction of the basic theory of selection and its implications for welfare and public policy, as well as a lens through which one can understand the ideas and limitations of existing empirical work on this topic. Expand
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