Regulator performance incentive

《Regulator performance incentive》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。

1、Availableonlineatwww.sciencedirect.comJournalofBanking&Finance32(2008)116–133www.elsevier.com/locate/jbfRegulatorperformance,regulatoryenvironmentandoutcomes:AnexaminationofinsuranceregulatorcareerincentivesonstateinsurancemarketsMartinF.Grace,RichardD.Phillips*Depart

2、mentofRiskManagementandInsurance,GeorgiaStateUniversity,P.O.Box4036,Atlanta,GA30302-4036,UnitedStatesAvailableonline14September2007AbstractInthispaperwetestwhetherthepastorfuturelabormarketchoicesofinsurancecommissionersprovideincentivesforregulatorsinstateswithpricer

3、egulationtoeitherfavororopposetheindustrybyallowingpricesthatdiffersignificantlyfromwhatwouldotherwisebethecompetitivemarketoutcome.Usingbiographicaldataoninsuranceregulators,economicandstatespecificmarketstructureandregulatoryvariables,andstatepremiumandlossdataontheper

4、sonalautomobileinsurancemarket,wefindnoevidenceconsumersinpriorapprovalstatespaidsignificantlydifferent‘‘unitprices’’forinsurancethanconsumersinstatesthatallowcompetitivemarketforcestodetermineequilibriumpricesduringthetimeperiod1985–2002.Wedo,however,findevidenceregulato

5、rswhoobtainedthepositionofinsurancecommissionerbypopularelectionandthosewhoseekhigherelectiveofficefollowingtheirtenureasinsurancecommissionerallowhigheroverall‘‘unitprices’’relativetocompetitivemarketstates.The‘‘unitprice’’ofinsuranceinregulatedstatesisnotstatisti-call

6、ydifferentfromthecompetitivemarketoutcomeforregulatorsthatmakelateralmovesbackintostategovernmentanditismildlyhigherforregulatorswhoentertheinsuranceindustryfollowingtheirtenure.Finally,wefindsomeevidenceregulatorswhodescribethemselvesasconsumeradvocatesaresuccessfulred

7、ucingthepriceofinsuranceinfavorofconsumersinregulatedmarkets.Overalltheresultsareconsistentwiththeexistenceofasymmetricinformationintheregulatoryprocessthatagentsusetoenhancetheircareeraspirations.Ó2007ElsevierB.V.Allrightsreserved.JELclassification:L51;H11;G22Keywords

8、:Autoinsurance;Regulation;Regulatoryincentives;Revolvingdoor1.Introductionpricesabovecompetitivelevelsandatothertimessuppres