Willigness to Pay for Long-Term Care Coverage: the Role of Private Information and Self-Insurance
AbstractBoth public and private insurance for long-term care is undeveloped in some European countries such as in Spain and empirical evidence is still limited. This paper aims at examining the determinants of the demand for Long Term Care (LTC) coverage in Spain using contingent valuation techniques. Our findings indicate that only one-fifth of the population is willing to pay to assure coverage for LTC expenditures although we find high price elasticity. LTC coverage decisions are significantly affected by private information asymmetry and housing tenure in giving rise to self-insurance reduces the probability of insurance being hypothetically purchased.
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Bibliographic InfoPaper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 124.
Length: 32 pages
Date of creation: 2004
Date of revision:
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Find related papers by JEL classification:
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-02-06 (All new papers)
- NEP-HEA-2005-02-06 (Health Economics)
- NEP-IAS-2005-02-06 (Insurance Economics)
- NEP-MIC-2005-02-06 (Microeconomics)
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