This study investigates about the effects of world and trading-block insurance market liberalization. For this purpose, a computable general equilibrium (CGE is used. The model consists of 8 regions and 5 sectors. Except for the insurance and financial sectors, all other sectors are considered as perfectly competitive. To capture an imperfectly competitive structure, we assume that insurance firms with a non-competitive structure charge customers a price higher than their marginal cost. Then we estimate the Global Trade Analysis Project (GTAP) model under a perfectly competitive and imperfectly competitive structure. Comparing the results of moving toward liberalization (i.e. moving from an imperfectly competitive structure to a perfectly competitive one), we conclude that nations can gain from trade in insurance by taking progressive steps toward liberalization based on General Agreement on Trade in Services (GATS) commitments.
Ofoghi, R. (2016). An investigation about Insurance Liberalization
in a General Equilibrium Model Framework. Insurance Research, 1(1), 75-94. doi: 10.22054/irisk.2016.4894
MLA
Reza Ofoghi. "An investigation about Insurance Liberalization
in a General Equilibrium Model Framework". Insurance Research, 1, 1, 2016, 75-94. doi: 10.22054/irisk.2016.4894
HARVARD
Ofoghi, R. (2016). 'An investigation about Insurance Liberalization
in a General Equilibrium Model Framework', Insurance Research, 1(1), pp. 75-94. doi: 10.22054/irisk.2016.4894
VANCOUVER
Ofoghi, R. An investigation about Insurance Liberalization
in a General Equilibrium Model Framework. Insurance Research, 2016; 1(1): 75-94. doi: 10.22054/irisk.2016.4894
)