Lin, Wen-Chang; Lai, Yi-Hsun; Powers, Michael R. - In: Journal of Risk & Insurance 81 (2014) 2, pp. 271-301
type="main" xml:lang="en" <title type="main">Abstract</title> <p>The article examines the risk-taking behavior of property–liability insurers in the presence of risk-based capital regulation. An option pricing model is developed to evaluate the expected regulatory cost and predict a nonlinear relationship between...</p>