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Who is willing to pay for long-term care insurance in Catalonia?

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  • Costa-Font, Joan
  • Rovira-Forns, Joan

Abstract

Both public and private insurance for long-term care (LTC) in European countries employed is underdeveloped. However, limited evidence is gathered on the behavioural demand responses to the introduction of insurance schemes expanding insurance coverage. This paper aims at empirically examining the determinants of the ex ante demand for LTC coverage drawing upon an insurance-based WTP referendum approach format. Data is collected from a representative population sample of Catalonia (Spain), before a countrywide funding system was developed. Our findings suggest that (based on our questionnaire format) only one-fifth of the population is willing to pay for LTC coverage though it is a highly elastic product. Ex ante demand for LTC coverage is driven by individual's perceptions of old age disability risk (private information asymmetry) and housing tenure (giving rise to self-insurance), the latter reduces the probability of insurance coverage demand.

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Bibliographic Info

Article provided by Elsevier in its journal Health Policy.

Volume (Year): 86 (2008)
Issue (Month): 1 (April)
Pages: 72-84

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Handle: RePEc:eee:hepoli:v:86:y:2008:i:1:p:72-84

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Web page: http://www.elsevier.com/locate/healthpol

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Citations

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Cited by:
  1. Martín-Fernández, Jesús & Gómez-Gascón, Tomás & Oliva-Moreno, Juan & del Cura-González, María Isabel & Domínguez-Bidagor, Julia & Beamud-Lagos, Milagros & Sanz-Cuesta, Teresa, 2010. "Perception of the economic value of primary care services: A willingness to pay study," Health Policy, Elsevier, vol. 94(3), pages 266-272, March.
  2. Legal, Renaud & Plisson, Manuel, 2008. "Assurance dépendance, effets de sélection et antisélection," Economics Papers from University Paris Dauphine 123456789/5055, Paris Dauphine University.
  3. Nouet, Sébastien & Plisson, Manuel & Nayaradou, Maximilien, 2007. "The Characteristics of the Demand for Private Long Term Care Insurance in France," Economics Papers from University Paris Dauphine 123456789/5054, Paris Dauphine University.
  4. Rinaldo Brau & Matteo Lippi Bruni & Anna Maria Pinna, 2010. "Public versus private demand for covering long-term care expenditures," Applied Economics, Taylor & Francis Journals, vol. 42(28), pages 3651-3668.

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