Estimating Spillover Effects in Property and Casualty Insurance Consumption

Douglas Bujakowski and Shinichi Kamiya

North American Actuarial Journal, 2023, vol. 27, issue 2, 355-379

Abstract: The determinants of insurance consumption have been extensively studied, yet spatial correlations are rarely considered within this framework. In this article, we discuss several channels through which spatial dependence may arise and test for spatial dependence using six years (2009–2014) of province, city, and firm-level data from China. Results suggest that spatial spillover effects are large and have the potential to seriously bias marginal effect estimates if neglected. Specifically, when regions experience similar changes in determinants, marginal effect estimates in spatial models are nearly 1.5 times that implied by aspatial models. Additionally, we investigate the sources of the spatial dependence and find that cross-border spillovers occur within and between firms.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10920277.2022.2086141 (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: https://EconPapers.repec.org/RePEc:taf:uaajxx:v:27:y:2023:i:2:p:355-379

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/uaaj20

DOI: 10.1080/10920277.2022.2086141

Access Statistics for this article

North American Actuarial Journal is currently edited by Kathryn Baker

More articles in North American Actuarial Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().