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ECONOMIC EXPERIMENTS, HYPOTHETICAL SURVEYS AND MARKET DATA STUDIES OF INSURANCE DEMAND AGAINST LOW‐PROBABILITY/HIGH‐IMPACT RISKS: A SYSTEMATIC REVIEW OF DESIGNS, THEORETICAL INSIGHTS AND DETERMINANTS OF DEMAND
Author(s) -
Robinson Peter John,
Botzen Willem Jan Wouter
Publication year - 2019
Publication title -
journal of economic surveys
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.657
H-Index - 92
eISSN - 1467-6419
pISSN - 0950-0804
DOI - 10.1111/joes.12332
Subject(s) - economics , heuristics , survey data collection , econometrics , actuarial science , contrast (vision) , public economics , computer science , statistics , mathematics , operating system , artificial intelligence
This paper provides a systematic review of the literature on 80 experimental, hypothetical survey and market data studies of insurance demand against low‐probability/high‐impact risks. The objective of the review is to extract lessons from these studies and to outline an agenda for future research. We contrast the results of experimental and survey studies to findings from market data. We focus on experimental design methods, insurance characteristics, as well as results about theories, heuristics, behavioural biases and explanatory variables. Lessons for policymakers are drawn which can facilitate disaster preparedness.