Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Rational Nonpurchase of Long-term-Care Insurance


Author Info

  • Pauly, Mark V
Registered author(s):


    Only a tiny fraction of the nonpoor population currently purchases private insurance coverage against long-term-care costs. Studies generally attribute the failure to purchase private coverage to "unawareness" by potential purchasers of the benefits of coverage and a misperception that Medicare currently covers long-term care. The author explores alternative reasons for failure to purchase coverage by well-informed, expected utility-maximizing, risk-averse individuals for whom long-term care is associated with a large increase in mortality and for whom family members represent an alternative source of care. There may be no demand for long-term-care insurance, even if it is made available at actuarially fair premiums, because the main consequence of coverage is to enhance the expected value of one's estate. Copyright 1990 by University of Chicago Press.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See for details.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Political Economy.

    Volume (Year): 98 (1990)
    Issue (Month): 1 (February)
    Pages: 153-68

    as in new window
    Handle: RePEc:ucp:jpolec:v:98:y:1990:i:1:p:153-68

    Contact details of provider:
    Web page:

    Related research



    No references listed on IDEAS
    You can help add them by filling out this form.


    Blog mentions

    As found by, the blog aggregator for Economics research:
    1. We can prevent the ‘crowding out’ of long term care insurance by family financing if government offers a level of provision that can then be topped up
      by Blog Admin in British Politics and Policy at LSE on 2011-06-02 10:14:03
    2. ESD: Volker Meier
      by Jason Shafrin in Healthcare Economist on 2007-07-24 05:13:19
    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:98:y:1990:i:1:p:153-68. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.