Title

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