Authors
Sarah A Janzen, Michael R Carter, Munenobu Ikegami
Publication date
2021/6
Journal
Journal of Risk and Insurance
Volume
88
Issue
2
Pages
293-324
Publisher
Wiley
Description
This paper develops a dynamic theoretical model to assess the impact of asset insurance on poverty and the cost of social protection in developing countries. We analyze the model under two technological assumptions: a standard, globally concave production technology, and a fixed cost technology that creates a non‐convex production set and admits the possibility of multiple equilibria and a poverty trap. Under both assumptions, the introduction of an asset insurance market reduces poverty and the costs of social protection. Under the non‐convex production set, there is a strong public finance case for insurance premium subsidies that target poor and vulnerable households and bring them into the insurance market. While the challenges of making microinsurance markets work are multiple, this analysis suggests the potential gains to solving these challenges are substantial.
Scholar articles
SA Janzen, MR Carter, M Ikegami - Journal of Risk and Insurance, 2021
SA Janzen, MR Carter, M Ikegami - UC-Davis working paper, 2013
SA Janzen, MR Carter, M Ikegami - 2012
SA Janzen, MR Carter, M Ikegami - 2016
MR Carter, M Ikegami, SA Janzen - Working Paper, 2011
SA Janzen, MR Carter, M Ikegami - Unpublished manuscript. https://arefiles. ucdavis. edu …, 2018
MR Carter, M Ikegami, SA Janzen - 2011