Abstract
AbstractThe diffusion of credit cards may have relaxed households' liquidity constraints, thereby stimulating the diffusion of commercial insurance. By investigating Chinese urban households who had no commercial insurance in 2013, we find that their initial access to credit cards significantly increased the likelihood of their holding commercial insurance in 2015. Our instrumental variable (IV) estimations confirm the causality. This positive effect is more pronounced among more liquidity‐constrained households and among households with more financial knowledge. Last, the initial access to credit cards also significantly enhanced commercial insurance renewal in 2015 among those households who had commercial insurance in 2013.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
