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Non-life insurance consumption in Italy: a sub-regional panel data analysis

Non-life insurance consumption in Italy: a sub-regional panel data analysis We analyze the consumption of non-life insurance across 103 Italian provinces in 1998–2002 in order to assess its determinants, in the light of the empirical literature. Using sub-regional data, we overcome an important limitation of cross-country analyses, i.e. the systemic heterogeneity due to country-specific characteristics. Individual heterogeneity is accounted for through panel data techniques. However, considering spatial units within a single market raises issues of cross-sectional or spatial dependence, either due to common nationwide and/or regional factors or to spatial proximity. We carefully assess spatial dependence, employing recent diagnostic tests, finding out that the regressors included in our specification successfully account for spatial dependence. Insurance turns out to depend on income, wealth and some demographics, as already established, but also on trust, judicial efficiency and borrowing conditions. These findings help in explaining the gap between Central-Northern Italy and the south of the country. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Geographical Systems Springer Journals

Non-life insurance consumption in Italy: a sub-regional panel data analysis

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References (81)

Publisher
Springer Journals
Copyright
Copyright © 2010 by Springer-Verlag
Subject
Economics; Regional/Spatial Science; Geographical Information Systems/Cartography; Urban Economics; Econometrics; Landscape/Regional and Urban Planning; Computer Appl. in Social and Behavioral Sciences
ISSN
1435-5930
eISSN
1435-5949
DOI
10.1007/s10109-010-0125-5
Publisher site
See Article on Publisher Site

Abstract

We analyze the consumption of non-life insurance across 103 Italian provinces in 1998–2002 in order to assess its determinants, in the light of the empirical literature. Using sub-regional data, we overcome an important limitation of cross-country analyses, i.e. the systemic heterogeneity due to country-specific characteristics. Individual heterogeneity is accounted for through panel data techniques. However, considering spatial units within a single market raises issues of cross-sectional or spatial dependence, either due to common nationwide and/or regional factors or to spatial proximity. We carefully assess spatial dependence, employing recent diagnostic tests, finding out that the regressors included in our specification successfully account for spatial dependence. Insurance turns out to depend on income, wealth and some demographics, as already established, but also on trust, judicial efficiency and borrowing conditions. These findings help in explaining the gap between Central-Northern Italy and the south of the country.

Journal

Journal of Geographical SystemsSpringer Journals

Published: Jul 13, 2010

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