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Fusions et économies de dimension sur le marché des assurances générales au Québec

Author

Listed:
  • J. François Outreville

    (Professeur agrégé de finance et assurance, Université Laval)

  • Carol Proulx

    (MBA, diplômé de l’Université Laval)

Abstract

Cross section regressions are used to evaluate the extent of economies of scale in the property-liability insurance industry prior to 1978 and to explain the increased number of mergers between 1978 and 1981 in the Quebec market. The second and third section of this paper discusses the appropriate approach to the problem of measuring economies of scale in the insurance industry. The fourth section describes the data and the empirical results. À l’aide d’une analyse de régression en coupe instantanée l’auteur tente de mesurer l’importance des économies de dimensions dans l’industrie des assurances générales avant 1978 et d’expliquer l’augmentation des fusions dans cette industrie, au Québec, entre 1978 et 1981. Les deuxième et troisième sections portent sur la question du choix d’une approche pertinente au problème de mesure des économies de dimension dans cette industrie. La dernière partie présente les résultats empiriques.

Suggested Citation

  • J. François Outreville & Carol Proulx, 1985. "Fusions et économies de dimension sur le marché des assurances générales au Québec," L'Actualité Economique, Société Canadienne de Science Economique, vol. 61(3), pages 350-361.
    • Handle: RePEc:ris:actuec:v:61:y:1985:i:3:p:350-361
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    References listed on IDEAS

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    1. Houston, David B & Simon, Richard M, 1970. "Economies of Scale in Financial Institutions: A Study in Life Insurance," Econometrica, Econometric Society, vol. 38(6), pages 856-864, November.
    2. J. David Cummins & Jack VanDerhei, 1979. "A Note on the Relative Efficiency of Property-Liability Insurance Distribution Systems," Bell Journal of Economics, The RAND Corporation, vol. 10(2), pages 709-719, Autumn.
    3. Allen, Robert F, 1974. "Cross-Sectional Estimates of Cost Economies in Stock Property-Liability Companies," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 100-103, February.
    4. Caleb A. Smith, 1955. "Survey of the Empirical Evidence on Economies of Scale," NBER Chapters, in: Business Concentration and Price Policy, pages 213-238, National Bureau of Economic Research, Inc.
    5. Wilson, Charles, 1977. "A model of insurance markets with incomplete information," Journal of Economic Theory, Elsevier, vol. 16(2), pages 167-207, December.
    6. Benston, George J, 1972. "Economies of Scale of Financial Institutions," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 4(2), pages 312-341, May.
    7. J. David Cummins & David J. Nye, 1981. "Portfolio Optimization Models for Property-Liability Insurance Companies: An Analysis and Some Extensions," Management Science, INFORMS, vol. 27(4), pages 414-430, April.
    8. Spence, Michael, 1978. "Product differentiation and performance in insurance markets," Journal of Public Economics, Elsevier, vol. 10(3), pages 427-447, December.
    9. Blair, Roger D & Jackson, Jerry R & Vogel, Ronald J, 1975. "Economies of Scale in the Administration of Health Insurance," The Review of Economics and Statistics, MIT Press, vol. 57(2), pages 185-189, May.
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    Cited by:

    1. Hanweck, Gerald A. & Hogan, Arthur M. B., 1996. "The structure of the property/casualty insurance industry," Journal of Economics and Business, Elsevier, vol. 48(2), pages 141-155, May.

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