Journal article
The robustness of output measures in property-liability insurance efficiency studies
Journal of banking & finance, Vol.34(7), pp.1510-1524
07/01/2010
DOI: 10.1016/j.jbankfin.2009.08.015
Abstract
We empirically examine two methods for measuring output in property-liability insurer efficiency studies: the value-added approach and the "flow" (or financial intermediation) approach. The approaches are not mutually consistent. The value-added approach is closely related to traditional measures of firm performance, but the flow approach is not. In addition, efficient value-added approach firms are less likely to go insolvent, while firms characterized as efficient by the flow approach are generally more likely to fail. We also find that the theoretical concern regarding the value-added approach's use of losses as a measure of output is not validated empirically. (C) 2009 Elsevier B.V. All rights reserved.
Details
- Title: Subtitle
- The robustness of output measures in property-liability insurance efficiency studies
- Creators
- J. Tyler Leverty - Univ Iowa, Dept Finance, Henry B Tippie Coll Business, Iowa City, IA 52242 USAMartin F. Grace - Georgia State University
- Resource Type
- Journal article
- Publication Details
- Journal of banking & finance, Vol.34(7), pp.1510-1524
- Publisher
- Elsevier
- DOI
- 10.1016/j.jbankfin.2009.08.015
- ISSN
- 0378-4266
- eISSN
- 1872-6372
- Number of pages
- 15
- Language
- English
- Date published
- 07/01/2010
- Academic Unit
- Finance
- Record Identifier
- 9984700653602771
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