Table 9.
COVID-19 Case Origin Disclosure and Insurance Take-up: The Moderating Role of Heuristics
This table reports the results on the role of heuristics in affecting how the take-up of COVID-19 insurance responds to local public disclosure of the case origins (Disclose (t-1), a dummy that equals one for having such origin disclosure). Each observation refers to a prefecture-day combination. Robust standard errors in parentheses are clustered at cities. All regression models include a constant and its estimates are not tabulated for brevity. *** p < 0.01, ** p < 0.05, * p < 0.1. Control variables in Table 2 are also controlled, but are not tabulated. Scaled-Cumulative Confirmed is prefectural cumulative confirmed cases scaled by local population in the prefecture city in 2018. Scaled-Cumulative Confirmed (t-1) > 0.05 is a dummy set to 1 if the scaled-cumulative number of confirmed cases in prefecture i in day t-1 is larger than 0.05 person per 10 thousand people, and 0 otherwise. SARS Cases Above 1000 is a dummy set to 1 if a province's confirmed cases in the SARS pandemic in 2003 exceeded 1000, and 0 otherwise. SARS Cases Above 1000 per se is absorbed by prefecture fixed effects. Milestone200 (t-1) is a dummy set to 1 if the cumulative confirmed cases in prefecture i in day t-1 has reached 200 cases, and 0 otherwise.
| (1) | (2) | |
|---|---|---|
| Panel A, Y= | lnPolicies | lnPremiums |
| Disclose (t-1) | 0.001 | 0.082*** |
| (0.013) | (0.022) | |
| Scaled-Cumulative Confirmed (t-1) > 0.05 | −0.002 | −0.026 |
| (0.010) | (0.028) | |
| Disclose (t-1) × Scaled-Cumulative Confirmed (t-1) > 0.05 | 0.076*** | −0.042 |
| (0.028) | (0.030) | |
| Control variables in Table 2 | Y | Y |
| Prefecture & Day FEs | Y | Y |
| Observations | 7882 | 7882 |
| Adjusted R-squared | 0.770 | 0.886 |
| Panel B, Y= | lnPolicies | lnPremiums |
| Disclose (t-1) | 0.027* | 0.078*** |
| (0.014) | (0.018) | |
| Disclose (t-1) × SARS Cases Above 1000 | 0.151*** | −0.053* |
| (0.042) | (0.031) | |
| Control variables in Table 2 | Y | Y |
| Prefecture & Day FEs | Y | Y |
| Observations | 9150 | 9150 |
| Adjusted R-squared | 0.757 | 0.887 |
| Panel C, Y= | lnPolicies | lnPremiums |
| Disclose (t-1) | 0.028* | 0.068*** |
| (0.016) | (0.017) | |
| Milestone200 (t-1) | 0.086** | 0.066 |
| (0.042) | (0.047) | |
| Disclose (t-1) × Milestone200 (t-1) | 0.360*** | 0.051 |
| (0.129) | (0.037) | |
| Control variables in Table 2 | Y | Y |
| Prefecture & Day FEs | Y | Y |
| Observations | 9150 | 9150 |
| Adjusted R-squared | 0.761 | 0.887 |