Insurance activity, real output, and geopolitical risk: Fresh evidence from BRICS
Chi-Chuan Lee and
Chien-Chiang Lee ()
Economic Modelling, 2020, vol. 92, issue C, 207-215
This paper fills some empirical gaps by evaluating the causal associations among insurance premiums, real output, and geopolitical risk in BRICS (Brazil, Russia, India, China, South Africa) from 1985 to 2017. We utilize a newly-developed Granger-causality quantile analysis to assess the causal relationships among the series under consideration in each distribution quantile. Our empirical results reveal unidirectional causality that runs from real output and geopolitical risk to insurance activities in Brazil and South Africa. We also observe bi-directional lower-tail causality among real output, insurance premiums, and geopolitical risk in Russia. Findings also present bi-directional causality among real output, insurance premiums, and geopolitical risk at different quantiles. Knowledge of these causal relationships can prevent governments from conducting a ‘one-size-fits-all’ policy.
Keywords: Geopolitical risks; Real output; Insurance premiums; BRICS (search for similar items in EconPapers)
JEL-codes: C22 G22 O11 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:92:y:2020:i:c:p:207-215
Access Statistics for this article
Economic Modelling is currently edited by S. Hall and P. Pauly
More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().