Ploughing in Flood (IMAGE)

University of Maryland

Ploughing in Flood

Caption

A University of Maryland-led study shows that subsidies can help people continually purchase insurance, but only if they have the financial literacy to understand the benefits and have the experience of seeing the policy in action. In a new paper published in American Economic Review, researchers conducted the first ever experimental study to look at the impact of subsidies. This paper provides insight into the "insurance puzzle", with implications for policy and educational programs.

Credit

Rajesh Ram

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