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Department of Economics, in association with Trinity Research in Social Sciences (TRiSS)

  • Date: Tuesday 30th January 2018

  • Time: 12.30-2pm

  • Venue: TRISS Seminar Room, 6th Floor Arts Building, Trinity College Dublin


Elisabeth Sadoulet

The Department of Economics is pleased to invite you to a talk by:

Elisabeth Sadoulet, UC Berkeley

entitled:

Subsidy Policies and Insurance Demand (joint with Alain de Janvry)

Abstract

Using data from a two-year randomized pricing experiment in China, we study the impact and design of subsidy policies for weather insurance. Results show that subsidies are effective in boosting demand in the short-run but not in the longer term. Exploring the channels, we show that while subsidies increase the direct and social effects of payout experiences by enlarging coverage, they also dampen these effects by reducing attention to payouts. We estimate a demand model for policy simulations. Results suggest that the optimum subsidy scheme should be continuously adjusted based on the policy objective and on past subsidies and payouts.

The authors invite you to read their full paper.