Fence off Black Swans

The Economics of Insurance for Vaccine Injury

Bibliographic Data

ID21512950
AuthorsZe Chen (0009-0003-5266-7923, School of Finance Renmin University of China Beijing 100872 China), Bingzheng Chen (School of Economics and Management Tsinghua University Beijing 100084 China), Yu Mao (0000-0002-5443-2787, School of Economics and Management Tsinghua University Beijing 100084 China, corresponding author)
Year2024
Volume86
Issue5
Pages995-1025
Publication date2024-10-01
Open AccessYes
TypeARTICLE
VenueOxford Bulletin of Economics and Statistics (JOURNAL)
Journal identifiersISSN: 0305-9049 • E-ISSN: 1468-0084
PublisherWiley (PUBLISHER • GB)
DOI10.1111/obes.12585
OpenAlexW4389477959
LanguageEN
References cited52

Being injured during vaccination, although infrequent, can occur, and this necessitates understanding the consequences of vaccine injuries. In this study, we analyse the impact of the risk of vaccine injuries, particularly the economic importance of vaccine injury compensation insurance (VICI) programmes for the injured, which few studies have investigated. Specifically, we examine the role of VICI on individuals' vaccination decisions by integrating an imperfect vaccine into an epidemiological‐economic model in the presence and absence of such an insurance mechanism. Our findings show that the risk of being injured is a non‐negligible risk that lowers individuals' incentives to be vaccinated. The introduction of VICI largely alleviates decision‐makers' concern about vaccine injury. Furthermore, our extended discussion shows the effect of insurance in encouraging vaccination persists under some more sophisticated scenarios

Actuarial science · Business · Economics · Incentive · Microeconomics · Vaccination · Influenza Virus Research Studies · Medicine · Psychology · SARS-CoV-2 and COVID-19 Research · Social Psychology · Vaccine Coverage and Hesitancy · Immunology

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