The COVID-19 pandemic has affected our daily life with respect to both wealth level and health status simultaneously. Many decision analyses under risks, which have multiattributed outcomes, employ multiattribute utility function.
- Speaker
- Date
- Thursday 21 Sep 2023, 12:00 - 13:00
- Type
- Seminar
- Room
- 7.43
- Space
- Bayle Building
The sign of cross-derivative of the utility function plays an important role because it captures trade-offs between attributes. This study aims to estimate the sign of the cross-derivative using a Japanese representative survey on the intention to purchase two types of insurance, those are income protection insurance and death insurance, before and during the COVID-19 pandemic.
First, we construct an economic model of the demand for income protection insurance and death insurance under the COVID-19 pandemic. We also examine how the sign of the cross-derivative affects the optimal demand for insurance when the government increases government spending such as lockdowns against the infection. Finally, we estimate the sign of the cross-derivative from a large representative survey of the intention to purchase both types of insurance in Japan. We find that preferences exhibit correlation aversion.
Online attendance
Interested individuals should contact healtheconomics@ese.eur.nl if they would like to attend the seminar virtually.
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- Health Economics
