Economics at your fingertips  

A cost efficiency analysis of the insurance industry in Mexico

Ana María Reyna () and Hugo J. Fuentes ()
Additional contact information
Ana María Reyna: GNP
Hugo J. Fuentes: ITESM CCM

Journal of Productivity Analysis, 2018, vol. 49, issue 1, 49-64

Abstract: Abstract In Mexico, the low participation of insurance activity in national production, in contrast to similar Latin American economies, is a concern. Industry’s regulator promoted more intense competition at the dawn of the century. Was deregulation followed by improvements in the financial and economic performance of Mexican insurance firms? The purpose of this paper is to answer this question through a comprehensive analysis of cost variations in an intertemporal manner, by breaking them down into the economic sources that produce them, including productivity. Cost frontier estimation was grounded in a joint production technology of desirable and undesirable outputs, modeled in an input-oriented fashion. Our results demonstrate that even though some companies achieved cost reductions from technological progress or improvements in efficiency, the Mexican insurance market does not show signs of significant productivity gains.

Keywords: Insurance; Cost efficiency; DEA; Undesirable outputs; C14; C67, D61, G14, G22 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11123/PS2

Access Statistics for this article

Journal of Productivity Analysis is currently edited by William Greene, Chris O'Donnell and Victor Podinovski

More articles in Journal of Productivity Analysis from Springer
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-05-15
Handle: RePEc:kap:jproda:v:49:y:2018:i:1:d:10.1007_s11123-017-0521-7