Why are some households so poorly insured?
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 mar...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2018
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| Online Access: | https://eprints.nottingham.ac.uk/53399/ |
| _version_ | 1848798933141159936 |
|---|---|
| author | Gathergood, John Wylie, Daniel |
| author_facet | Gathergood, John Wylie, Daniel |
| author_sort | Gathergood, John |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T20:27:38Z |
| format | Article |
| id | nottingham-53399 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:27:38Z |
| publishDate | 2018 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-533992020-02-22T04:30:18Z https://eprints.nottingham.ac.uk/53399/ Why are some households so poorly insured? Gathergood, John Wylie, Daniel 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. Elsevier 2018-08-06 Article PeerReviewed application/pdf en https://eprints.nottingham.ac.uk/53399/1/jebo_submit_manuscript_accepted.pdf Gathergood, John and Wylie, Daniel (2018) Why are some households so poorly insured? Journal of Economic Behavior and Organization . ISSN 0167-2681 (In Press) |
| spellingShingle | Gathergood, John Wylie, Daniel Why are some households so poorly insured? |
| title | Why are some households so poorly insured? |
| title_full | Why are some households so poorly insured? |
| title_fullStr | Why are some households so poorly insured? |
| title_full_unstemmed | Why are some households so poorly insured? |
| title_short | Why are some households so poorly insured? |
| title_sort | why are some households so poorly insured? |
| url | https://eprints.nottingham.ac.uk/53399/ |