Investigators at National Bureau of Economic Research (NBER) Discuss Findings in Risk Management (Can Insurance Alter Poverty Dynamics and Reduce the Cost of Social Protection In Developing Countries?)

2020 AUG 26 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- A new study on Risk Management is now available. According to news reporting originating in Cambridge, Massachusetts, by NewsRx journalists, research stated, “This paper develops a dynamic theoretical model to assess the impact of asset insurance on poverty and the cost of social protection in developing countries. We analyze the model under two technological assumptions: a standard, globally concave production technology, and a fixed cost technology that creates a non-convex production set and admits the possibility of multiple equilibria and a poverty trap.”

Funders for this research include Department for International Development, United States Agency for International Development.

The news reporters obtained a quote from the research from the National Bureau of Economic Research (NBER), “Under both assumptions, the introduction of an asset insurance market reduces poverty and the costs of social protection. Under the non-convex production set, there is a strong public finance case for insurance premium subsidies that target poor and vulnerable households and bring them into the insurance market.”

According to the news reporters, the research concluded: “While the challenges of making microinsurance markets work are multiple, this analysis suggests the potential gains to solving these challenges are substantial.”

For more information on this research see: Can Insurance Alter Poverty Dynamics and Reduce the Cost of Social Protection In Developing Countries? Journal of Risk & Insurance, 2020;():. Journal of Risk & Insurance can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Journal of Risk & Insurance - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1539-6975)

Our news correspondents report that additional information may be obtained by contacting Michael R. Carter, National Bureau of Economic Research (NBER), Cambridge, MA 02138, United States. Additional authors for this research include Sarah A. Janzen and Munenobu Ikegami.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/jori.12322. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

(Our reports deliver fact-based news of research and discoveries from around the world.)