Researchers at National Sun Yat Sen University Target Economics (Asymmetric Dynamics of Insurance Premium: the Impacts of Output and Economic Policy Uncertainty)

2019 NOV 29 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Data detailed on Economics have been presented. According to news reporting originating in Kaohsiung City, Taiwan, by NewsRx journalists, research stated, “This paper investigates the asymmetric and nonlinear transmission of real output and economic policy uncertainty to insurance premiums for the US economy over the annual period of 1980-2014. Using the most up-to-date nonlinear autoregressive distributed lags framework, we simultaneously examine short- and long-run asymmetric responses of insurance premiums through positive and negative partial sum decompositions of changes in the explanatory variables.”

Financial support for this research came from Ministry of Science and Technology of Taiwan.

The news reporters obtained a quote from the research from National Sun Yat Sen University, “Our empirical results reveal that real output and economic policy uncertainties both affect insurance premiums in an asymmetric and nonlinear manner, but the transmission mechanism is not the same. As to the impact of real output, we find that an increase in real output leads to enhancing the insurance premiums, while a decrease in output has a greater impact causing insurance premiums to move down. For the impact of economic policy uncertainty, the results also suggest that total and non-life insurance premiums increase with rising uncertainty, while life insurance premiums decrease with rising uncertainty.”

According to the news reporters, the research concluded: “These results have significant implications for insurance-related econometric analysis, investment decisions, forecasting, and policy-making.”

For more information on this research see: Asymmetric Dynamics of Insurance Premium: the Impacts of Output and Economic Policy Uncertainty. Empirical Economics, 2019;57(6):1959-1978. Empirical Economics can be contacted at: Physica-Verlag Gmbh & Co, PO Box 10 52 80, 69042 Heidelberg, Germany. (Springer - www.springer.com; Empirical Economics - http://www.springerlink.com/content/0377-7332/)

Our news correspondents report that additional information may be obtained by contacting C.C. Lee, National Sun Yat Sen University, Dept. of Finance, Kaohsiung, Taiwan. Additional authors for this research include R. Gupta and A. Lahiani.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s00181-018-1539-z. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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