Đang chuẩn bị liên kết để tải về tài liệu:
Credit Unions and the Supply of Insurance to Low Income Households

Data set weights are used to adjust for sampling and response rates, and to provide estimates of Wisconsin’s total household population using the sample data. A new procedure for developing data set weights was used with the 2008 Family Health Survey. The 2008 FHS sample included only landline telephone numbers, but ever-increasing numbers of people are using only cell phones, with no landline telephone service. Researchers are learning that the characteristics of cell-phone-only users differ from characteristics of people who use landline telephones. Excluding “cell only” people excludes a part of Wisconsin’s population from the survey. | Credit Unions and the Supply of Insurance to Low Income Households by Pat McGregor and Donal McKillop Pat McGregor Department of Economics University of Ulster Newtownabbey Jordanstown Northern Ireland. e-mail ppl.mcgregor@ulst.ac.uk Donal McKillop Professor of Financial Services School of Management and Economics Queens University Belfast University Road Belfast Northern Ireland. e-mail dg.mckillop@qub.ac.uk The authors are indebted to Dave Canning Harvard and Michael Moore Queens for their comments on an earlier version of the paper though responsibility for any remaining errors are the authors. 1 Credit Unions and the Supply of Insurance to Low Income Households Section 1 Introduction One aspect of the vicious circle of poverty in distressed neighbourhoods is the paucity of institutions such as commercial banks that provide credit there see for example Flowers 1999 and Dymski and Mohanty 1999 . Given their characteristics it would be anticipated that credit unions should have a natural role to play in such circumstances.1 In fact some credit unions are specifically designated as low-income and are chartered to serve those of modest means.2 The central focus of this paper is to develop a behavioural model for low-income credit unions where the credit union operates as a financial intermediary providing both a credit service and an insurance service to low-income members. In particular the credit union enables the low-income household to trade in an uncertain environment intertemporal claims for financial services and thus engage in consumption smoothing.3 The model is built upon two premises derived from the environment within which low-income credit unions operate. First all members must make a deposit prior to being admitted to the credit union. The deposit is similar to an insurance premium but one where the return is in the form of an interest payment if the member s income is normal but if income is unfavourable the member has the right to credit. Second .