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More on the optimal demand for long-term care insurance

Author

Listed:
  • Christophe Courbage

    (The Geneva Association)

  • David Crainich

    (CNRS-LEM and IESEG School of Management
    IESEG School of Management (LEM-CNRS))

Abstract

The demand for long-term care (LTC) insurance depends – among other things – on the relationship between potential policyholders and their relatives since the latter may informally provide LTC that is otherwise purchased on the market. The combined effects of intra-family moral hazard and altruism on LTC insurance purchase are examined in this paper. First, the interaction between LTC insurance and informal care supply are determined. Then the effects of the policyholders’ wealth, the policyholders’ quality of life and the informal care givers’ quality of life on this interaction are analysed. Finally, the conditions under which a two-sided intra-family moral hazard occurs are investigated.

Suggested Citation

  • Christophe Courbage & David Crainich, 2012. "More on the optimal demand for long-term care insurance," Working Papers 2012-ECO-17, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:e201217
    as

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    References listed on IDEAS

    as
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