Abstract
We examine the relationship between cognitive abilities and commercial insurance participation. Using data from the Chinese Family Panel Study, we find that average cognitive ability has a significantly positive impact on commercial insurance participation. However, this influence comes mainly from literacy ability, indicating that the literal meaning of the words plays a major role. Additionally, trust level can also affect the impacts of cognitive abilities on commercial insurance participation. Specifically, residents with lower trust levels are less likely to use their cognitive abilities to process information and make commercial insurance purchasing decisions. Moreover, we identify the supplementary effect of economic and managerial knowledge on cognitive abilities.
| Original language | English |
|---|---|
| Article number | 101691 |
| Journal | North American Journal of Economics and Finance |
| Volume | 61 |
| DOIs | |
| Publication status | Published - Jul 2022 |
| Externally published | Yes |
Keywords
- Cognitive ability
- Information
- Insurance participation
- Trust
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