Browsing by Author "Dragos, Simona Laura"
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- ItemAn econometric approach to factors affecting crop insurance in Romania(Technická Univerzita v Liberci, ) Dragos, Simona Laura; Mare, Codruta; Ekonomická fakultaCrop insurance is a very well implemented mechanism in the economic and agricultural sectors of the developed countries. In the developing countries there are yet in practice traditional local systems of helping the other in the case of natural disasters. The transition to an organized system, based on buying insurance policies, is a very slow process and is, for the moment, used and accepted only by big land owners. The study based on a sample of 308 small farmers in Romania analyzes the factors influencing the decision of buying an insurance policy: age, education, size of the village, the proximity to a city, the type of culture, etc. The sampling method aimed at ensuring representativity on several levels: regional – villages from different counties; education – different levels of education for farmers and different fields of study; type of village – villages of different sizes and situated at various distances from towns; type of crop – farmers that mainly deal with vegetables, pomiculture, vine and field crops. Through two econometric models, Ordered Logit and Binary Logit, both the decision of buying an insurance policy and the type of insurance chosen (partial or full) are assessed. Results show a higher propensity towards using the insurance system in the case of younger farmers who have had access to tertiary education (especially in the field of economics and business), who live in big villages near important cities and who cultivate vegetables. Even though the study is regional, the emphasized mechanisms are universally valid and can be used by policymakers from developing economies.
- ItemEstimating consumers’ behaviour in motor insurance using discrete choice models(Technical university of Liberec, Czech Republic, 2017-12-20) Dragos, Cristian Mihai; Dragos, Simona Laura; Ekonomická fakultaInsurance is a financial service in which consumption is highly affected by the characteristics of the potential buyer and his perceptions about the offered product. Motor insurance with its two components – the Motor Third Party Liability Insurance (MTPL) and the Motor Damage insurance – constitutes the largest line of business of the non-life insurance sector in Europe. The present study models the voluntary motor damage insurance consumer behaviour using discrete choice models, hypothesizing a hierarchical and a non-hierarchical decision. The sample consists of 311 car owners from Cluj County, Romania. The econometric estimations use binary logit, multinomial logit and nested logit models. The predictive power of these models is compared by means of the Receiver Operating Characteristic curve for discrete choice models. The results reveal that the main factors affecting the purchase of a voluntary motor insurance policy are risk preference/aversion, the distance travelled by car, the driver’s education level and the ratio between the driver’s income and the car price. In contrast to previous studies who estimated the risk profile only through proxy variables without accounting for any behavioural aspects, our study has successfully integrated the risk profile of the policyholders as a self-standing explanatory variable. Since the explanatory variables are representative not only for a particular geographical area, the highlighted behaviour may be applied to all cases where motor damage insurance is voluntary.