Background Uuncertainty and the Demand for Insurance against Insurable Risks

Luigi Guiso and Tullio Jappelli ()

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: Theory suggests that people facing higher uninsurable background risk buy more insurance against other risks that are insurable. This proposition is supported by Italian cross-sectional data. It is shown that the probability of purchasing casualty insurance increases with earnings uncertainty. This finding is consistent with consumer preferences being characterised by decreasing absolute prudence

Keywords: Insurance; background risk; prudence (search for similar items in EconPapers)
JEL-codes: D81 (search for similar items in EconPapers)
Date: 1998-04-01
New Economics Papers: this item is included in nep-ias and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published in The Geneva Papers on Risk and Insurance Theory, May 1998, vol. 23, pages 7-27

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Related works:
Journal Article: Background Uncertainty and the Demand for Insurance Against Insurable Risks (1998)
Working Paper: Background Uncertainty and the Demand for Insurance Against Insurable Risks (1996)
Working Paper: Background UNcertainty and the Demand for Insurance Against Insurable Risks (1996)
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