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A Subregional Panel Data Analysis of Life Insurance Consumption in Italy
Author(s) -
Millo Giovanni,
Carmeci Gaetano
Publication year - 2015
Publication title -
journal of risk and insurance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.055
H-Index - 63
eISSN - 1539-6975
pISSN - 0022-4367
DOI - 10.1111/jori.12023
Subject(s) - panel data , econometrics , estimator , economics , contrast (vision) , consumption (sociology) , sample (material) , aggregate data , aggregate (composite) , perspective (graphical) , actuarial science , statistics , mathematics , computer science , sociology , social science , chemistry , chromatography , artificial intelligence , materials science , geometry , composite material
A bstract We propose a subregional panel approach to the determinants of life insurance development, with new methodological tools, applied to Italian data. Our sample has enough variability in observables and less unobserved heterogeneity than cross‐country ones, but is potentially affected by spatial dependence and serial correlation. We propose an encompassing estimator, showing that the spatial diffusion process of life insurance is driven by idiosyncratic shocks in neighbors. Our results partly reconcile the aggregate perspective with survey evidence supporting, in contrast to international studies, a negative link between education and risk aversion, and identifying the positive effect of young dependents predicted by theory.