The impact of state taxes on self-insurance

• 成果类型: Article
• 署名作者: Ke, B; Petroni, KR; Shackelford, DA
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Michigan State University; Michigan State University's Broad College of Business
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(00)00030-6
• 发表日期: 2000
• 关键词: DIFFERENTIALS; COMPETITION; taxation; prices

摘要

This paper assesses whether insurers' state taxes reduce purchases of property-casualty coverage. Tests are conducted using state aggregates of insurer-level data from publicly available, annual accounting reports for 1993-1995. A positive relation between self-insurance and state taxes is detected, consistent with consumers opting to self-insure rather than bear the incidence of higher insurer taxes. As expected, tax effects vary with the elasticity of demand. When demand is largely inelastic, e,g., automobile liability coverage, taxes do not affect self-insurance. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classification: H22; H25; G22; D12.