Table 3.

Neighborhood COVID-19 Case Origin Disclosure and COVID-19 Insurance Take-up

This table examines whether the demand for COVID-19 insurance in a prefecture city responds to public disclosure of the case origins in its major neighboring city (Disclose_Neighbor (t-1), a dummy that equals one for having such origin disclosure), which shares the most of the border with the focal prefecture. Hubei province is the most badly hit province in which cities are completely locked down to each other. The no-result in Hubei shows that economic co-movements between neighboring prefectures are unlikely to be responsible for our finding in Columns (1) and (3) because lockdowns only prevent the virus from spreading between the two neighboring cities but should have a minimum effect on the economic co-movements between a prefecture and its major neighboring prefecture. Each observation refers to a prefecture-day combination. Robust standard errors in parentheses are clustered at prefecture cities. All regression models include a constant and its estimates are not tabulated for brevity. *** p < 0.01, ** p < 0.05, * p < 0.1.

	(1)	(2)	(3)	(4)
	Provincesother than Hubei	Hubei	Provincesother than Hubei	Hubei
Y=	lnPolicies		lnPremiums
Disclose_Neighbor (t-1)	0.042***	0.014	0.037*	−0.033
	(0.015)	(0.035)	(0.022)	(0.078)
lnConfirmed_Neighbor (t-1)	0.005	−0.002	−0.005	−0.020
	(0.008)	(0.012)	(0.013)	(0.025)
lnDead_Neighbor (t-1)	−0.016	0.028	−0.029	0.079
	(0.017)	(0.033)	(0.068)	(0.050)
lnProvConfirmed (t-1)	0.009	0.129***	0.033***	0.030
	(0.008)	(0.011)	(0.011)	(0.024)
Prefecture FEs	Y	Y	Y	Y
Day FEs	Y	Y	Y	Y
Observations	8693	455	8693	455
Adjusted R-squared	0.747	0.769	0.888	0.879