Insuring Well-Being? : Buyer's Remorse and Peace of Mind Effects from Insurance

This paper estimates the causal effects of index insurance coverage on subjective well-being among livestock herders in southern Ethiopia. The randomization of incentives to purchase index-based livestock insurance and three rounds of panel data ar...

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Main Authors:	Tafere, Kibrom, Barrett, Christopher B., Lentz, Erin, Ayana, Birhanu T.
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2017
Subjects:	INSURANCE WELL-BEING PASTORALISTS INDEX INSURANCE SUBJECTIVITY LIVESTOCK HERDERS BUYER'S REMORSE
Online Access:	http://documents.worldbank.org/curated/en/747921511792941207/Insuring-well-being-buyers-remorse-and-peace-of-mind-effects-from-insurance http://hdl.handle.net/10986/28917

id	okr-10986-28917
recordtype	oai_dc
spelling	okr-10986-289172021-06-08T14:42:47Z Insuring Well-Being? : Buyer's Remorse and Peace of Mind Effects from Insurance Tafere, Kibrom Barrett, Christopher B. Lentz, Erin Ayana, Birhanu T. INSURANCE WELL-BEING PASTORALISTS INDEX INSURANCE SUBJECTIVITY LIVESTOCK HERDERS BUYER'S REMORSE This paper estimates the causal effects of index insurance coverage on subjective well-being among livestock herders in southern Ethiopia. The randomization of incentives to purchase index-based livestock insurance and three rounds of panel data are exploited to 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. Insurance coverage currently in force generates subjective well-being gains that are significantly higher than the buyer's remorse effect of an insurance that lapsed without paying out. Given the temporal correlation in insurance purchase propensity, failure to control for potential buyer's remorse effects can bias downward estimates of welfare gains from current insurance coverage. 2017-12-01T17:45:28Z 2017-12-01T17:45:28Z 2017-11 Working Paper http://documents.worldbank.org/curated/en/747921511792941207/Insuring-well-being-buyers-remorse-and-peace-of-mind-effects-from-insurance http://hdl.handle.net/10986/28917 English Policy Research Working Paper;No. 8256 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Ethiopia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INSURANCE WELL-BEING PASTORALISTS INDEX INSURANCE SUBJECTIVITY LIVESTOCK HERDERS BUYER'S REMORSE
spellingShingle	INSURANCE WELL-BEING PASTORALISTS INDEX INSURANCE SUBJECTIVITY LIVESTOCK HERDERS BUYER'S REMORSE Tafere, Kibrom Barrett, Christopher B. Lentz, Erin Ayana, Birhanu T. Insuring Well-Being? : Buyer's Remorse and Peace of Mind Effects from Insurance
geographic_facet	Africa Ethiopia
relation	Policy Research Working Paper;No. 8256
description	This paper estimates the causal effects of index insurance coverage on subjective well-being among livestock herders in southern Ethiopia. The randomization of incentives to purchase index-based livestock insurance and three rounds of panel data are exploited to 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. Insurance coverage currently in force generates subjective well-being gains that are significantly higher than the buyer's remorse effect of an insurance that lapsed without paying out. Given the temporal correlation in insurance purchase propensity, failure to control for potential buyer's remorse effects can bias downward estimates of welfare gains from current insurance coverage.
format	Working Paper
author	Tafere, Kibrom Barrett, Christopher B. Lentz, Erin Ayana, Birhanu T.
author_facet	Tafere, Kibrom Barrett, Christopher B. Lentz, Erin Ayana, Birhanu T.
author_sort	Tafere, Kibrom
title	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_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_sort	insuring well-being? : buyer's remorse and peace of mind effects from insurance
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/747921511792941207/Insuring-well-being-buyers-remorse-and-peace-of-mind-effects-from-insurance http://hdl.handle.net/10986/28917
_version_	1764468025401016320

Insuring Well-Being? : Buyer's Remorse and Peace of Mind Effects from Insurance

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