Economics at your fingertips  

Efficiency Comparisons between Mutual and Stock Life Insurance Companies

Martin Grace () and L. A. Gardner

Risk and Insurance from EconWPA

Abstract: 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.

Date: 1994-07-14
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) (application/pdf) (application/postscript)

Related works:
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) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Risk and Insurance from EconWPA
Bibliographic data for series maintained by EconWPA ().

Page updated 2018-07-14
Handle: RePEc:wpa:wuwpri:9407003