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Price Elasticity of Demand for Term Life Insurance and Adverse Selection / Mark V. Pauly, Kate H. Withers, Krupa Subramanian-Viswana, Jean Lemaire, John C. Hershey.
- Format:
- Book
- Author/Creator:
- Pauly, Mark V.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w9925.
- NBER working paper series no. w9925
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2003.
- Summary:
- This paper provides an empirical estimate of price' and risk' elasticities of demand for term life insurance for those who purchase some insurance. It finds that the elasticity with respect to changes in premiums is generally higher than the elasticity with respect to changes in risk. It also finds that the elasticity, in the range of -0.3 to -0.5, is sufficiently low that adverse selection in term life insurance is unlikely to lead to a death spiral and may not even lead to measured effects of adverse selection on total purchases.
- Notes:
- Print version record
- August 2003.
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