Bootstrapped truncated model

Using 2009–2017 Taiwanese insurance company data from the database of Taiwan Economic Journal, we employ Simar–Wilson bootstrapping to prevent efficiency overestimation in data envelopment analysis (DEA) and then regress the factors on these efficiency scores by using a truncated rather than traditional Tobit model. Evidence shows that the companies’ modified average efficiency score is 0.8784 (0.9068 using DEA). Meanwhile, domestic insurers outperform foreign insurers, and larger companies perform more poorly.

1p chauchaungayxua2 19-01-2020 31 1   Download