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Community Rating, Cross Subsidies and Underinsurance: Why so many Households in Japan do not Purchase Earthquake Insurance

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  • Michio Naoi
  • Miki Seko
  • Kazuto Sumita

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  • Michio Naoi & Miki Seko & Kazuto Sumita, 2010. "Community Rating, Cross Subsidies and Underinsurance: Why so many Households in Japan do not Purchase Earthquake Insurance," The Journal of Real Estate Finance and Economics, Springer, vol. 40(4), pages 544-561, May.
    • Handle: RePEc:kap:jrefec:v:40:y:2010:i:4:p:544-561
    DOI: 10.1007/s11146-009-9224-9
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    References listed on IDEAS

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    1. Browne, Mark J & Hoyt, Robert E, 2000. "The Demand for Flood Insurance: Empirical Evidence," Journal of Risk and Uncertainty, Springer, vol. 20(3), pages 291-306, May.
    2. Jean-Jacques Laffont, 1989. "The Economics of Uncertainty and Information," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121360, December.
    3. Naoi, Michio & Seko, Miki & Sumita, Kazuto, 2009. "Earthquake risk and housing prices in Japan: Evidence before and after massive earthquakes," Regional Science and Urban Economics, Elsevier, vol. 39(6), pages 658-669, November.
    4. Charles Leung & Sam Tang & Nicolaas Groenewold, 2006. "Growth Volatility and Technical Progress: A Simple Rent-seeking Model," Journal of Economics, Springer, vol. 88(2), pages 159-178, August.
    5. Michio Naoi & Kazuto Sumita & Miki Seko, 2007. "Earthquakes and the Quality of Life in Japan," Journal of Property Research, Taylor & Francis Journals, vol. 24(4), pages 313-334, December.
    6. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-648, July-Aug..
    7. Michael Rothschild & Joseph Stiglitz, 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 629-649.
    8. Pierre Picard, 2008. "Natural Disaster Insurance and the Equity‐Efficiency Trade‐Off," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(1), pages 17-38, March.
    9. Yui Leung, Charles Ka, 2001. "Productivity growth, increasing income inequality and social insurance: the case of China?," Journal of Economic Behavior & Organization, Elsevier, vol. 46(4), pages 395-408, December.
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    Cited by:

    1. Xiao Lin, 2020. "Risk awareness and adverse selection in catastrophe insurance: Evidence from California’s residential earthquake insurance market," Journal of Risk and Uncertainty, Springer, vol. 61(1), pages 43-65, August.
    2. Michio Naoi & Kazuto Sumita & Miki Seko, 2010. "Estimating Consumer Valuation of Earthquake Risk: Evidence from Japanese Housing Markets," International Real Estate Review, Global Social Science Institute, vol. 13(2), pages 117-133.
    3. Ron Cheung & Cassandra R. Cole & David A. Macpherson & Kathleen A. McCullough & Charles Nyce, 2015. "Demographic Factors and Price Distortions in Insurance," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 18(1), pages 1-28, March.
    4. Aloysius G. Brata & Piet Rietveld & Henri L.F. de Groot & Budy P. Resosudarmo & Wouter Zant, 2014. "Living with the Merapi Volcano: Risks and Disaster Microinsurance," Departmental Working Papers 2014-13, The Australian National University, Arndt-Corden Department of Economics.
    5. Aloysius Gunadi Brata & Henri L. F. de Groot & Piet Rietveld & Budy P. Resosudarmo & Wouter Zant, 2021. "Resilience toward Volcanic Eruptions: Risk Perception and Disaster Microinsurance in Yogyakarta, Indonesia," Sustainability, MDPI, vol. 13(16), pages 1-16, August.
    6. Fabrizio Terenzio Gizzi & Jonghun Kam & Donatella Porrini, 2020. "Time windows of opportunities to fight earthquake under-insurance: evidence from Google Trends," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-11, December.
    7. Michio Naoi & Miki Seko & Takuya Ishino, 2012. "Earthquake Risk in Japan: Consumers' Risk Mitigation Responses After the Great East Japan Earthquake," Journal of Economic Issues, Taylor & Francis Journals, vol. 46(2), pages 519-530.
    8. Terry Dinan & Perry Beider & David Wylie, 2019. "The National Flood Insurance Program: Is It Financially Sound?," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 22(1), pages 15-38, March.
    9. Daniel R. Petrolia & Craig E. Landry & Keith H. Coble, 2013. "Risk Preferences, Risk Perceptions, and Flood Insurance," Land Economics, University of Wisconsin Press, vol. 89(2), pages 227-245.
    10. Shinichi Kamiya & Noriyoshi Yanase, 2019. "Learning from extreme catastrophes," Journal of Risk and Uncertainty, Springer, vol. 59(1), pages 85-124, August.
    11. Manqing Wu & Guochun Wu, 2020. "An Analysis of Rural Households’ Earthquake-Resistant Construction Behavior: Evidence from Pingliang and Yuxi, China," IJERPH, MDPI, vol. 17(23), pages 1-14, December.

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