Title: The Price Elasticity of Demand for Whole Life Insurance
Abstract: The Journal of FinanceVolume 40, Issue 1 p. 225-239 Article The Price Elasticity of Demand for Whole Life Insurance DAVID F. BABBEL, DAVID F. BABBEL University of California at Berkeley and The Wharton School, University of Pennsylvania. This study was suggested by David R. Klock and David Denslow. The author is indebted to James Wilcox, Richard Holton, Robert G. Harris, Joe Fields, Michael R. Haggerty, and especially J. D. Cummins, and an anonymous referee for helpful comments and suggestions on earlier versions of this manuscript. Steve Blough and Nicholas Economides provided able statistical assistance. Remaining errors are the sole responsibility of the author.Search for more papers by this author DAVID F. BABBEL, DAVID F. BABBEL University of California at Berkeley and The Wharton School, University of Pennsylvania. This study was suggested by David R. Klock and David Denslow. The author is indebted to James Wilcox, Richard Holton, Robert G. Harris, Joe Fields, Michael R. Haggerty, and especially J. D. Cummins, and an anonymous referee for helpful comments and suggestions on earlier versions of this manuscript. Steve Blough and Nicholas Economides provided able statistical assistance. Remaining errors are the sole responsibility of the author.Search for more papers by this author First published: March 1985 https://doi.org/10.1111/j.1540-6261.1985.tb04946.xCitations: 41 Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onEmailFacebookTwitterLinkedInRedditWechat ABSTRACT In this study a real price index is created for whole life insurance sold in the United States from 1953 to 1979. New purchases of whole life insurance are shown to be negatively related to changes in this cost index, contrary to what has been widely accepted in the insurance literature, but consistent with economic theory. The existence of strong price elasticity of demand for whole life insurance does not ensure, however, that the insurance industry manifests a high degree of price competition. REFERENCES 1H. Assael. Consumer Behavior and Marketing Action. Boston: Kent Publishing Company, 1982, pp. 495–508. Google Scholar 2A. L. Auxier. "A Test of the Usefulness of Policy Information in Ranking Life Insurance Alternatives." Journal of Risk and Insurance 43 (March 1976), 87–98. 10.2307/251611 Web of Science®Google Scholar 3D. F. Babbel. "Inflation, Indexation and Life Insurance Sales in Brazil." 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Publication Year: 1985
Publication Date: 1985-03-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 13
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