nep-ias New Economics Papers
on Insurance Economics
Issue of 2011‒01‒23
four papers chosen by
Soumitra K Mallick
Indian Institute of Social Welfare and Business Management

  1. Enrolment in Micro Life and Health Insurance: Evidences from Sri Lanka By Bendig, Mirko; Arun, Thankom
  2. Heterogeneity and Risk Sharing in Village Economies By Pierre-André Chiappori; Krislert Samphantharak; Sam Schulhofer-Wohl; Robert M. Townsend
  3. Pathways to a universal basic pension in Greece By Chrysa Leventi; Manos Matsaganis
  4. Optimizing the stake holder’s perspective on enhancing the service quality in health care By Nakkeeran, Senthil kumar; G, Thiagarajan

  1. By: Bendig, Mirko (German Institute for Global and Area Studies); Arun, Thankom (University of Central Lancashire)
    Abstract: Microinsurance is an emerging concept protecting households from the potentially catastrophic expenditures associated with family related shocks. Therefore, this paper presents evidence on the determinants of insurance participation using probit models on household survey data from Sri Lanka, conditional on household's microfinance institution enrolment. Further, we employ multivariate probit regressions to analyse factors affecting the participation in different types of insurance. We find that the household’s experience of a family related shock is positively associated with the participation in micro health insurance schemes under study. There is strong evidence that microinsurance has not yet succeeded in proportionately reaching the most vulnerable households. Notably, education of the household head is a strong determinant of microinsurance participation.
    Keywords: microinsurance, household behaviour, Sri Lanka
    JEL: G22 O16 R22
    Date: 2011–01
  2. By: Pierre-André Chiappori; Krislert Samphantharak; Sam Schulhofer-Wohl; Robert M. Townsend
    Abstract: We measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model and complement the results with a measure based on optimal portfolio choice. Among households with relatives living in the same village, full insurance cannot be rejected, suggesting that relatives provide something close to a complete-markets consumption allocation. There is substantial heterogeneity in risk preferences estimated from the full-insurance model, positively correlated in most villages with portfolio-choice estimates. The heterogeneity matters for policy: Although the average household would benefit from eliminating village-level risk, less-risk-averse households who are paid to absorb that risk would be worse off.
    JEL: D12 D14 D53 D81 D91 G11 O16
    Date: 2011–01
  3. By: Chrysa Leventi (Athens University of Economics & Business); Manos Matsaganis (Athens University of Economics and Business)
    Abstract: Although basic pension had for years failed to catch the imagination of policy makers in Greece, it was suddenly brought to the agenda in the context of the severe crisis raging since November 2009. In May 2010 the government committed to a harsh austerity programme, aiming at fiscal consolidation, in return for a rescue package easing the sovereign debt crisis. The July 2010 pension reform, a key provision of the austerity programme, provided for the introduction of a near-universal basic pension from 2015. The paper attempts to explain why, paradoxically, the crisis made more realistic a universal basic pension in Greece. We argue, firstly, that social insurance pensions may be ripe for path-breaking reform if heavily subsidised in a non-transparent way, and, secondly, that any progress towards basic income is likely to be gradual, uneven and specific to the national policy context.
    Keywords: Universal basic pension, Greece, economic crisis, 2010 reform
    Date: 2011–01–11
  4. By: Nakkeeran, Senthil kumar; G, Thiagarajan
    Abstract: For the success of health care organizations, accurate measurement of health care service quality is as important as understanding the nature of the service delivery system. Without a valid measure, it would be difficult to establish and implement appropriate tactics or strategies for service quality management. Experts have struggled for decades to formulate a concise, meaningful and generally applicable definition of the quality of health care. However, the complexity and variability of many definitions are very confusing even to experts. Patients, service providers and other parties involved in the process of health care service delivery, understand and describe service quality in different ways. Different perspectives on health care quality lead to different expectations and different methods of quality measurement. Patients tend to evaluate health care quality according to the responsiveness to their specific needs. Most patients define quality as efforts of physicians to do everything possible for a patient. Patient’s expectations about the health care system may differ from those of health care professionals and managers. On the other hand, patients cannot evaluate many technical aspects of health care service quality. Physicians can provide a high level technical quality but still be rated low by patients because of the lack of humanity, responsiveness or satisfaction. For physicians and other health care providers measurement of service quality has typically been driven by medical outcomes. However, outcomes indicative of quality may differ for a patient and physician. Health care administrators often use managerial input measures such as the average number of nursing hours required for an outpatient surgery. This research paper aims to explore the ways and means towards optimizing the competing stake holders perspectives on enhancing the service quality in health care.
    Keywords: Service quality; Healthcare; Optimization; India;
    JEL: M1 I1
    Date: 2010–08–10

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