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Food safety risks and defensive behavior: Evidence from health insurance

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  • Shen, Yu
  • Yang, Qingqing
  • Zhao, Chenyang

Abstract

We innovatively investigate public defensive behavior in response to food safety risks. Using novel transaction-level data from a large insurance company in China, we empirically find a significant positive correlation between food safety risks and health insurance purchases. The causality is identified by 2SLS regressions with instrumental variables and a quasi-natural experiment. Further analysis shows that the insurance effect is a result of residents’ irrational overreaction and defensive psychology towards food safety risks.

Suggested Citation

  • Shen, Yu & Yang, Qingqing & Zhao, Chenyang, 2023. "Food safety risks and defensive behavior: Evidence from health insurance," Finance Research Letters, Elsevier, vol. 58(PA).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323003999
    DOI: 10.1016/j.frl.2023.104027
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    References listed on IDEAS

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