Firm Size Distribution: Testing the "Independent Submarkets Model" in the Italian Motor Insurance Industry

Luigi Buzzacchi and Tommaso Valetti
Authors registered in the RePEc Author Service: Tommaso Valletti

STICERD - Economics of Industry Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: This paper tests the presence of multiple independent submarkets in the Italian motor insurance industry. Independence is motivated by administrative boundaries among provinces and by further locational reasons. We find that the independence effects are sufficient to induce a minimum degree of inequality in the size distribution of firms once submarkets are aggregated. These results are fully consistent with the predictions of Sutton (1998). We also show that the degree of skewness in the firms size distribution is related to characteristics such as the population living in an area, its density and the riskiness of a submarket.

Keywords: Size distribution of firms; independent submarkets; insurance companies (search for similar items in EconPapers)
Date: 1999-09
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://sticerd.lse.ac.uk/dps/ei/ei24.pdf (application/pdf)

Related works:
Journal Article: Firm size distribution: Testing the "independent submarkets model" in the Italian motor insurance industry (2006)
Working Paper: Firm Size Distribution: Testing the 'Independent Submarkets Model' in the Italian Motor Insurance Industry (2002)
Working Paper: Firm size distribution: testing the "independent submarkets model" in the Italian motor insurance industry (1999)
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:cep:stieip:24

Access Statistics for this paper

More papers in STICERD - Economics of Industry Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE
Bibliographic data for series maintained by ().