Plausibly Exogenous [1323] - Financial Constraint (09/15/2023)
LHS Variable
Product pricing
RHS Variable
Financial constraints
Source of Exogenous Variation
Some insurance groups contain both life and property & casualty (P&C) divisions. Losses to P&C divisions, such as those caused by severe weather events, can worsen P&C divisions' financial conditions.
- Ge (2022), “How do financial constraints affect product pricing? Evidence from weather and life insurance premiums”