We propose a subregional panel approach to the determinants of life insurance development, with new methodological tools, applied to Italian data. Our sample has enough variability in observables and less unobserved heterogeneity than cross-country ones, but is potentially affected by spatial dependence and serial correlation. We propose an encompassing estimator, showing that the spatial diffusion process of life insurance is driven by idiosyncratic shocks in neighbors. Our results partly reconcile the aggregate perspective with survey evidence supporting, in contrast to international studies, a negative link between education and risk aversion, and identifying the positive effect of young dependents predicted by theory.

A subregional panel data analysis of life insurance consumption in Italy

MILLO, GIOVANNI;CARMECI, GAETANO
2015-01-01

Abstract

We propose a subregional panel approach to the determinants of life insurance development, with new methodological tools, applied to Italian data. Our sample has enough variability in observables and less unobserved heterogeneity than cross-country ones, but is potentially affected by spatial dependence and serial correlation. We propose an encompassing estimator, showing that the spatial diffusion process of life insurance is driven by idiosyncratic shocks in neighbors. Our results partly reconcile the aggregate perspective with survey evidence supporting, in contrast to international studies, a negative link between education and risk aversion, and identifying the positive effect of young dependents predicted by theory.
File in questo prodotto:
File Dimensione Formato  
a subregional panel.pdf

Accesso chiuso

Tipologia: Documento in Versione Editoriale
Licenza: Digital Rights Management non definito
Dimensione 419.22 kB
Formato Adobe PDF
419.22 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
2841254_a subregional panel-PostPrint.pdf

accesso aperto

Descrizione: PostPrint VQR3
Tipologia: Bozza finale post-referaggio (post-print)
Licenza: Digital Rights Management non definito
Dimensione 987.92 kB
Formato Adobe PDF
987.92 kB Adobe PDF Visualizza/Apri
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11368/2841254
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 28
  • ???jsp.display-item.citation.isi??? 27
social impact