Insurance Fraud and Corruption in the United States

Posted: 26 Sep 2014 Last revised: 19 Apr 2016

See all articles by Rajeev K. Goel

Rajeev K. Goel

Illinois State University - Department of Economics

Date Written: 2014

Abstract

Using cross-sectional data for US states, this article examines the determinants of insurance fraud, focusing especially on the nexus between convictions for corruption and for insurance fraud. Results show that corruption convictions tend to crowd out insurance fraud convictions -- i.e., increases in convictions for corruption result in lower fraud convictions. In other findings, more crime fighting and prosecutorial resources increase fraud convictions, while the effects of specific insurance regulations are statistically insignificant. These findings are generally robust to simultaneity between corruption and insurance fraud. Policy implications are discussed.

Keywords: insurance, fraud, corruption, United States

JEL Classification: K29, K42, L84

Suggested Citation

Goel, Rajeev K., Insurance Fraud and Corruption in the United States (2014). Applied Financial Economics, Vol. 24, No. 4, pp. 241-246, 2014. Available at SSRN: https://ssrn.com/abstract=2500947

Rajeev K. Goel (Contact Author)

Illinois State University - Department of Economics ( email )

Normal, IL 61790-4200
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
352
PlumX Metrics