Financial Instability and Life Insurance Demand
The purpose of this research is to discuss Japanese financial instability and both private life insurance and public life insurance (Kampo) demand. At the same time, we also consider Kampos main role and what Kampo should be as an insurance service provider in the future. From empirically estimating private life insurance and Kampo demand functions using household-level data provided by the Postal Services Research Institute, the authors find that differences in income, children, pension and knowledge affect households decisions on the purchase of life insurance products. Income and financial assets also appear to have significant effect on the purchase of private life insurance products and Kampo. However, pension and bankruptcy experience appear to have an impact only on Kampo, while age (less than 40) and occupation (public official) factors affect only private life insurance. Dummy variables representing insurer comparison, knowledge and bankruptcy experience are not found to have any significant effect on decisions concerning private life insurance. The authors also conducted simultaneous estimations to examine the reasons why households with private life insurance products additionally purchase Kampo and vice versa. The results indicate that differences in income, children and bankruptcy experience variables do not affect the decision-making process, and that a knowledge dummy has a negative impact on additional purchases.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 2 (2007)
Issue (Month): 1 (May)
|Contact details of provider:|| Web page: https://www.degruyter.com|
|Order Information:||Web: https://www.degruyter.com/view/j/apjri|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.