Linguistic-induced life insurance consumption

Weijun Yin, Cuixia Chen and Bing Liu

Economic Analysis and Policy, 2024, vol. 82, issue C, 1083-1101

Abstract: Linguistic research shows that there are differences in how language distinguishes future events from the present. When a language speaker separates the grammatical structure of a language from the future and present, they also separate the future and present in behavior when facing intertemporal choices. In this study, we investigate language induced time perception as a determinant of cross-country life insurance consumption. The evidence demonstrates that life insurance consumption is higher in countries where there is non-obligatory grammatical future tense in language. This result still confirms the language-insuring hypothesis after considering cultural dimensions, alternative language variables, alternative insurance variable and endogeneity problem. To sum up, the results suggest that language featured by future time reference affects speaker’s time perception and life insurance decision. Our evidence also provides implication for life insurer in multinational businesses.

Keywords: Language; Future time reference; Life insurance consumption; Hofstede; National culture (search for similar items in EconPapers)
JEL-codes: D10 D12 G52 Z10 Z13 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:82:y:2024:i:c:p:1083-1101

DOI: 10.1016/j.eap.2024.04.030

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