Efficiency Comparisons between Mutual and Stock Life Insurance Companies
Martin Grace () and
L. A. Gardner
Risk and Insurance from EconWPA
This research examines the relationship between firm efficiency and choice of organizational form using a seven year panel data set of 586 life insurers. Our study window is from 1985 to 1991. We began the study with two questions in mind: "Do stocks and mutuals use different production technologies?" and "Are stocks and mutuals equally efficient or is one form relatively more efficient than the other?". Using some cost and error structure tests that resemble those found in recent efficiency studies, we find evidence that stocks and mutuals have distinctive cost structures and production technologies. Results also show that efficiency varies with organizational form, with stocks being more scale efficient than mutuals but mutuals being more X-efficient than stocks.
Note: Postscript (ASCII) RMI GRACE2.ABS
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Working Paper: Efficiency Comparisons between Mutual and Stock Life Insurance Companies
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpri:9407003
Access Statistics for this paper
More papers in Risk and Insurance from EconWPA
Series data maintained by EconWPA ().