Food safety risks and defensive behavior: Evidence from health insurance

Yu Shen, Qingqing Yang and Chenyang Zhao

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: We innovatively investigate public defensive behavior in response to food safety risks. Using novel transaction-level data from a large insurance company in China, we empirically find a significant positive correlation between food safety risks and health insurance purchases. The causality is identified by 2SLS regressions with instrumental variables and a quasi-natural experiment. Further analysis shows that the insurance effect is a result of residents’ irrational overreaction and defensive psychology towards food safety risks.

Keywords: Food safety risks; Health insurance; Defensive behavior (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323003999

DOI: 10.1016/j.frl.2023.104027

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