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Eliciting the Demand for Long Term Care Coverage: A Discrete Choice Modelling Analysis

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Listed author(s):
  • Rinaldo Brau

    (University of Cagliari)

  • Matteo Lippi Bruni

    (University of Bologna)

Abstract

We evaluate the demand for long term care (LTC) insurance prospects in a stated preference context, by means of the results of a choice experiment carried out on a representative sample of the Emilia-Romagna population. Choice modelling techniques have not been used yet for studying the demand for LTC services. In this paper these methods are first of all used in order to assess the relative importance of the characteristics which define some hypothetical insurance programmes and to elicit the willingness to pay for some LTC coverage prospects. Moreover, thanks to the application of a nested logit specification with ‘partial degeneracy’, we are able to model the determinants of the preference for status quo situations where no systematic cover for LTC exists. On the basis of this empirical model, we test for the effects of a series of socio-demographic variables as well as personal and household health state indicators.

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Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2006.71.

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Date of creation: May 2006
Handle: RePEc:fem:femwpa:2006.71
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Keywords: Health Insurance; Long Term Care; Choice Experiments; Nested Logit Models;

Other versions of this item:

Find related papers by JEL classification:
  • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
  • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
  • H40 - Public Economics - - Publicly Provided Goods - - - General
  • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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Cited by:

  1. Matteo Lippi Bruni & Cristina Ugolini, 2016. "Delegating home care for the elderly to external caregivers? An empirical study on Italian data," Review of Economics of the Household, Springer, vol. 14(1), pages 155-183, March.
  2. Joachim Marti, 2012. "Assessing preferences for improved smoking cessation medications: a discrete choice experiment," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(5), pages 533-548, October.
  3. Silvia Balia & Rinaldo Brau, 2014. "A Country For Old Men? Long‐Term Home Care Utilization In Europe," Health Economics, John Wiley & Sons, Ltd., vol. 23(10), pages 1185-1212, October.
  4. Alessandro Mengoni & Chiara Seghieri & Sabina Nuti, 2013. "The application of discrete choice experiments in health economics: a systematic review of the literature," Working Papers 201301, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
  5. Philip Worrall & Thierry Chaussalet, 2015. "A structured review of long-term care demand modelling," Health Care Management Science, Springer, vol. 18(2), pages 173-194, June.

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