empirical analysis of firm behavior that compares corporate demand for property and catastrophe insurance (here, terrorism). We … combine demand and supply data and apply a simultaneous-equation approach to address the problem of endogenous premium … decisions. The main finding is that demand for property and catastrophe insurance are not very different and that the demand for …

insurance for non-catastrophe risks. This result differs from the findings on individual demand for insurance. The terrorism … price elasticity of the demand for terrorism insurance is half in this area relative to the rest of the country …. -- terrorism ; corporate demand for insurance ; catastrophe financing ; empirical analysis …