A shaken view? Evidence on risk perceptions and insurance choices using Japanese earthquake data

My main aim is to use the exogenous variation stemming from the 2011 GEJE to investigate the effects of adverse events on individuals risk perceptions, and how these translate into altered insurance decisions. For this, I will use several data sets, and will analyse the impact of the GEJE on insurance coverage. Of major interest here will be households in regions unaffected by the GEJE as their objective earthquake risk remains largely unchanged after the GEJE, meaning that any observed change in insurance behaviour (holding constant other factors) is likely a result of a subjective change in risk perception.
Moreover, I will investigate how individuals reactions differed depending on their objective earthquake rusk by exploiting the variation in earthquake risk with Japan. This will shed light on the question whether individuals overestimate very small probabilities or whether they neglect them when making decisions. Lastly, I will research the role of information, and whether insurance coverage for individuals making choices based on descriptive information differs from those deciding based on experience.