This paper seeks to explain the large differences in the incidence of motor insurance fraud between Italian provinces. The econometric analysis highlights the role of the differences in per capita income and strength of social norms common to other types of crimes. Moreover the cross province...

This article presents a structural model of the Italian motor third party insurance sector, introducing an innovative methodology to analyze and forecast premium dynamics and underwriting profitability. Long and short-run relationships between the macroeconomic environment and claims average...

This paper tests the presence of multiple independent submarkets in the Italian motor insurance industry. Independence is motivated by administrative boundaries among provinces and by further locational reasons. We find that the independence effects are sufficient to induce a minimum degree of...

Sutton (1998) has recently proposed a theoretical lower bound to firm size inequality when a market is made of several independent submarkets. His results are valid asymptotically, as the number of submarkets becomes arbitrarily large. We show that, in small samples, his results can be...

Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk and car insurance using data from the UK. The main...