Abstract
Using six years of data, 1985–1990, we estimate hybrid translog cost functions for 561 life insurers. We examine the resulting residuals to determine the relative efficiency of insurers in the sample. We then test the residuals to see if they are related to so-called X-efficiencies because of internal and external monitoring, or to other factors related to rent-seeking. Results show a large degree of persistent inefficiency seems to exist among sample firms, the inefficiencies relate to some internal or external monitoring, and rent-seeking may be occurring.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
