Gropper, Michael J.; Kuhnen, Camelia M. - National Bureau of Economic Research - 2021
Theoretically, wealthier people should buy less insurance, and should self-insure through saving instead, as insurance … entails monitoring costs. Here, we use administrative data for 63,000 individuals and, contrary to theory, find that the … wealthier have better life and property insurance coverage. Wealth-related differences in background risk, legal risk, liquidity …