A Multi-Product Cost Study of the US Life Insurance Industry
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.
life insurance, insurance industry, cost function, economies of scale, economies of scope
Accounting | Corporate Finance | Insurance
Financial Performance Analysis
Review of Quantitative Finance and Accounting
A Multi-Product Cost Study of the US Life Insurance Industry. (2003). Review of Quantitative Finance and Accounting. 20, (2), 169-186. Research Collection School Of Accountancy.
Available at: http://ink.library.smu.edu.sg/soa_research/811