Open AccessTesting for Convergence in the European Insurance Sector: A Non-Linear Factor Approach
Author(s) -
Nicholas Apergis,
Alexandros Gabrielsen,
James E. Payne,
Paolo Zagaglia
Publication year - 2012
Publication title -
asian journal of finance and accounting
Language(s) - English
Resource type - Journals
ISSN - 1946-052X
DOI - 10.5296/ajfa.v4i2.1764
Subject(s) - convergence (economics) , harmonization , economics , balance sheet , balance (ability) , econometrics , actuarial science , public economics , macroeconomics , accounting , medicine , physics , acoustics , physical medicine and rehabilitation
This paper investigates the factors behind long-term convergence in the insurance sector by questioning the role of harmonization and regulation across the EMU. By investigating convergence through balance-sheet items, the study sheds light on the role played by the management preferences of insurances across the EMU. Overall, the convergence tests employed within this study provide evidence of limited convergence within the insurance sector across the EMU countries.