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50 60 70 80 90 100<br />

Insurance coverage (percentage po<strong>in</strong>ts)<br />

Figure 1.8: Insurance Coverage vs. Seizable Assets<br />

ND<br />

ME<br />

MT<br />

VT<br />

MN<br />

CT<br />

MA<br />

AK<br />

AL<br />

AR AZ<br />

IA PA<br />

DC<br />

MS<br />

DE<br />

KS<br />

OK<br />

WI NY KY<br />

TN MO<br />

GA ID<br />

CO IL<br />

VA NMUT NV MD MI<br />

NH<br />

NC OH<br />

OR<br />

NE HI<br />

SC<br />

FL<br />

IN<br />

SD<br />

CA<br />

WA<br />

TX<br />

WY LA<br />

WV<br />

8 9 10 11 12<br />

ln(seizable assets)<br />

(a) Insurance Coverage vs. Seizable<br />

Assets<br />

60 70 80 90 100<br />

Insurance coverage (percentage po<strong>in</strong>ts)<br />

TX<br />

MT<br />

VT<br />

RI<br />

CT<br />

ND MA<br />

ME<br />

MN<br />

NJ<br />

IA<br />

DC<br />

NH<br />

NV<br />

KS<br />

NY TN<br />

WI WA ID<br />

KY<br />

AK<br />

GA IL<br />

NM<br />

CO MD<br />

MO<br />

VA OR UT<br />

OH<br />

NC NE<br />

FL<br />

HI<br />

IN<br />

SC<br />

AL<br />

AZ<br />

AR<br />

PA<br />

MI<br />

SD<br />

MS OK<br />

WV<br />

8.5 9 9.5 10 10.5<br />

ln(seizable assets) for constant sample<br />

(c) Insurance Coverage vs. Simulated<br />

Instrument<br />

60 70 80 90 100<br />

Insurance coverage (percentage po<strong>in</strong>ts)<br />

ID<br />

NV<br />

GAMI<br />

MO<br />

CO VAUT<br />

NE<br />

NY TN<br />

KY WA IL<br />

NM<br />

OH<br />

NC<br />

SC<br />

PA<br />

NH<br />

IN<br />

MD<br />

AZ<br />

AR<br />

AL<br />

CA<br />

TX<br />

MS<br />

WY<br />

8.6 8.8 9 9.2 9.4 9.6<br />

ln(seizable home equity) for constant sample<br />

(e) Insurance Coverage vs. Historical<br />

Instrument<br />

LA<br />

CA<br />

RI<br />

CT<br />

NJ<br />

WV<br />

MA<br />

WY<br />

NJ<br />

ME<br />

LA<br />

VT<br />

DE<br />

DE<br />

RI<br />

50 60 70 80 90 100<br />

Insurance coverage (percentage po<strong>in</strong>ts)<br />

8 9 10 11 12<br />

ln(seizable assets)<br />

(b) Insurance Coverage vs. Seizable<br />

Assets<br />

60 70 80 90 100<br />

Insurance coverage (percentage po<strong>in</strong>ts)<br />

8.5 9 9.5 10 10.5<br />

ln(seizable assets) for constant saple<br />

(d) Insurance Coverage vs. Simulated<br />

Instrument<br />

60 70 80 90 100<br />

Insurance coverage (percentage po<strong>in</strong>ts)<br />

8.6 8.8 9 9.2 9.4 9.6<br />

ln(seizable home equity) for constant sample<br />

(f) Insurance Coverage vs. Historical<br />

Instrument<br />

Notes: Figures on the same row show the exact same data. In the left column, data po<strong>in</strong>ts<br />

are <strong>in</strong>dicated with state abbreviations. In the right column, states are <strong>in</strong>dicated with<br />

circles proportional to the number of observations from that state. Panels A <strong>and</strong> B plot<br />

the raw data: <strong>in</strong>surance coverage aga<strong>in</strong>st log seizable assets averaged by state. Panels C<br />

<strong>and</strong> D plots the reduced form: <strong>in</strong>surance coverage aga<strong>in</strong>st the <strong>in</strong>strument by state. The<br />

simulated <strong>in</strong>strument is mean log seizable assets for a constant, nationally representative<br />

sample of households as though they lived <strong>in</strong> that state. Panels E <strong>and</strong> F plots the reduced<br />

form with the historical <strong>in</strong>strument. The historical <strong>in</strong>strument is constructed similarly to<br />

the simulated <strong>in</strong>strument us<strong>in</strong>g seizable home equity under <strong>in</strong>flation-adjusted 1920<br />

homestead exemption laws. The sample is made up of un<strong>in</strong>sured <strong>and</strong> privately <strong>in</strong>sured<br />

households, exclud<strong>in</strong>g households with a head age 65 or older. Pooled data from the 1999<br />

to 2005 PSID, <strong>in</strong>flation-adjusted to 2005 us<strong>in</strong>g the CPI-U.

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