A Multi-Product Cost Study of the US Life Insurance Industry
Publication Type
Journal Article
Version
Publisher’s Version
Publication Date
3-2003
Abstract
This paper reports estimates of overall and product specific economies of scale, as well as, economies of scope for the main outputs of the life insurance industry. In addition, the paper presents a number of structural tests of the production technology. The results indicate that the estimated cost function satisfies the regularity conditions, that the industry exhibits overall and product specific economies of scale, and that there are significant economies of scope between the main lines of business.
Keywords
life insurance, insurance industry, cost function, economies of scale, economies of scope
Discipline
Accounting | Corporate Finance | Insurance
Research Areas
Financial Performance Analysis
Publication
Review of Quantitative Finance and Accounting
Volume
20
Issue
2
First Page
169
Last Page
186
ISSN
0924-865X
Identifier
10.1023/A:1023098109619
Publisher
Springer
Citation
SEGAL, Dan.
A Multi-Product Cost Study of the US Life Insurance Industry. (2003). Review of Quantitative Finance and Accounting. 20, (2), 169-186.
Available at: https://ink.library.smu.edu.sg/soa_research/811