Buying control? ‘Locus of control’ and the uptake of supplementary health insurance

This paper examines the relationship between locus of control (LOC) and demand for supplementary health insurance (SUPP). Drawing on longitudinal data from Germany, we document robust evidence that individuals internal LOC increases take up private We find effect one standard deviation increase in measure probability SUPP purchase is equivalent to a 14 percent household income. Second, positive association self-reported becomes small insignificant when LOC. These results suggest might be an unobserved individual trait can partly explain previously documented advantageous selection into SUPP. Third, comparable using Australia, which enhances external validity our results.