This study points out a potential unintended effect of efforts to enhanceaffordability of insurance prices by regulating rates: It may ultimately lead tohigher insurance costs. This is because rate regulation that suppresses insuranceprices below competitive levels, or provides significant...

This paper empirically tests the predictions of the Priest-Klein model of pre-trial bargaining. It exploits variation in tort liability for bad faith insurance law across states and time during two decades of evolving law from the 1970s to the 1990s. Using repeated cross-sectional datasets of...

This paper examines the relationship between mergers and acquisitions, efficiency, and scale economies in the US life insurance industry. We estimate cost and revenue efficiency over the period 1988-1995 using data envelopment analysis (DEA). The Malmquist methodology is used to measure changes...