Work in progress
Dance for the Rain of Pay for Insurance? An Empirical Analysis of the Italian Crop-Insurance market
w/ Luca Citino and Matteo ParadisiAbstract: Despite the increased frequency of extreme weather events, the utilization of climate-related crop insurance contracts in Italy and other European countries remains low and highly heteroge- nous across areas. In this paper we investigate the economic factors characterizing low coverage rates by aligning administrative data on insurance purchases and subsequent damage claims at the crop-municipality level with high-frequency georeferenced data on weather events. We focus on two potential explanations: inefficient pricing of insurance contracts due to adverse selection, and choice frictions that drive a wedge between the value for insurance and actual demand. In order to identify adverse selection, we leverage variation from a 2014 reform that lowered the cap for premium subsidies in all EU countries. As for frictions we investigate whether firms are more likely to buy insurance when faced with “salient” extreme events. Our main findings indicate that both adverse selection and choice frictions are present in this market. We conclude by discussing how current price subsidies may be less effective than mandates in this context.Some (don’t) Like it Hot. Persistent High Temperatures Increase Depression and Anxiety
w/ Giulia MartinelliAbstract: We study the impacts of high temperatures on milder mental health outcomes using clinical administrative data from a National Health Service of England programme treating anxiety and depression. Leveraging monthly variation in temperatures at the English Clinical Commissioning Group level, we find robust evidence indicating that extremely hot temperatures, i.e. above 34°C, lead to an increase the demand for mental health support, assessments, and treatments by approximately 10, 15 and 12 per cent, respectively. We also show that when temperature shocks are long-lasting and result in heatwaves longer than ten days, the effects are particularly pronounced. These results are not affected by individuals’ adaptive response to similar heat stress experienced in the previous month or year. A back-of-the-envelope calculation indicates that the health costs associated with the high-temperature externality appear to be substantial.In a Hotter World. The Effect of Temperature on Students Performance
w/Rosario Ballatore and Daniela VuriAbstract: We investigate the effect of higher temperatures on student performance in Italy. We align administrative data on mandatory students’ tests with detailed weather information at municipality level. Our analysis considers standard test results and new emotional perceptions outcomes that allow to better understand how students respond to higher outdoor temperatures, in a setting characterized by low air conditioning penetration. Using test-to-test random exposure to temperature, our results show significant reduction in performance, with stronger effects for math and for younger students. We also found evidence of emotional disruption when temperatures the day of the test are high.Beyond Birth: the Medium-Term Impact of Prenatal Exposure to Air Pollution
w/ Simone Marco Ferro and Chiara SerraAbstract: We investigate the medium-term health effects of prenatal exposure to moder- ate air pollution matching satellite P M10 concentration estimates with longitudinal data on hospitalisations and filled prescriptions for the universe of live-births in a large Italian region. Employing quasi-random variation in PM10 in a two-way fixed-effects model, we show that prenatal exposure to pollution leads to worse birth outcomes and to more hospitalisations and filled prescriptions in the first ten years of life, especially at the bottom health quantiles. We rule out selection and attrition bias and show that the geographical mobility of mothers does not respond to air quality.