IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The costs of defense-related layoffs in New England

Listed author(s):
  • Yolanda K. Kodrzycki
Registered author(s):

    Since the late 1980s, declines in defense spending have resulted in dramatic employment reductions in defense-related sectors of the economy. Although considerable information exists on the fate of major defense contractors and military bases in New England, little is known about what has happened to laid-off defense workers.> This article reviews the distinctive features of life insurance companies and how they have reshaped their liabilities and restructured their assets in order to cope with the consequences of rising interest rates and increasing competition for savings during the past three decades. The author analyzes the consequences of these financial innovations for the capital of the industry as well as the distribution of capital among life companies, and goes on to examine the issues relevant for measuring and controlling the capital of life companies. He concludes that prudent standards for capital should take into account an insurance company's entire balance sheet, not just its holdings of risky assets. Marking only risky assets according to their disposal values, while reporting other assets and liabilities according to other rules, can greatly misstate the financial condition of life insurance companies. And to the degree that financial intermediaries increasingly favor more familiar assets, the role of nonfinancial corporations as financial intermediaries will continue to expand.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    Article provided by Federal Reserve Bank of Boston in its journal New England Economic Review.

    Volume (Year): (1995)
    Issue (Month): Mar ()
    Pages: 3-23

    in new window

    Handle: RePEc:fip:fedbne:y:1995:i:mar:p:3-23
    Contact details of provider: Postal:
    600 Atlantic Avenue, Boston, Massachusetts 02210

    Phone: 617-973-3397
    Fax: 617-973-4221
    Web page:

    More information through EDIRC

    Order Information: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:fip:fedbne:y:1995:i:mar:p:3-23. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.