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Institutional drivers of life insurance consumption: a dynamic panel approach for European countries

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  • Simona Laura Dragoş

    (Babeş-Bolyai University of Cluj Napoca
    University of Orleans, LEO)

  • Codruţa Mare

    (Babeş-Bolyai University of Cluj Napoca)

  • Cristian Mihai Dragoş

    (University of Orleans, LEO
    Babeş-Bolyai University of Cluj Napoca)

Abstract

The motivation behind this study resides in the heterogeneous development of life insurance across 31 European (developed and former communist) nations over the period 2002–2012. We use the dynamic panel methodology for explaining the main institutional drivers of life insurance consumption. The results show that the most significant institutional factor is governance effectiveness. Among the economic and demographic factors the interest rate and fiscal freedom exert a negative effect on life insurance consumption. Our results can be the basis for improving governance policies in former communist countries and for creating an institutional system of right incentives on the market.

Suggested Citation

  • Simona Laura Dragoş & Codruţa Mare & Cristian Mihai Dragoş, 2019. "Institutional drivers of life insurance consumption: a dynamic panel approach for European countries," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 36-66, January.
    • Handle: RePEc:pal:gpprii:v:44:y:2019:i:1:d:10.1057_s41288-018-0106-3
    DOI: 10.1057/s41288-018-0106-3
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    2. Gabriela-Mihaela MURESAN, 2019. "Public Perception Of Insurance In Romania: A Survey Of Insurance Consumers And Non-Consumers," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(21), pages 1-5.
    3. Dan Costin Nițescu & Valentin Murgu, 2020. "The Bioeconomy and Foreign Trade in Food Products—A Sustainable Partnership at the European Level?," Sustainability, MDPI, vol. 12(6), pages 1-20, March.
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    6. Miron Gabriela Monica, 2020. "The Influence of VAT Variation on the Damages Resulting from Fraud in the Romanian Economy," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(4), pages 111-131, December.

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