Comparative Statics Under Multiple Sources of Risk with Applications to Insurance Demand

In this paper we propose an answer to the following problem of comparative statics in models with multiple sources of risk: How a risk averse agent will change his coinsurance demand when the distribution of the insurable loss is shifted? To answer the question, we first comment on Jack Meyer's results and then we show how an alternate approach leads to more definitive comparative statics. The Geneva Papers on Risk and Insurance Theory (1992) 17, 21–33. doi:10.1007/BF00941955