Narrow Framing and Long-Term Care Insurance

Daniel Gottlieb () and Olivia Mitchell

No 21048, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We propose a model of narrow framing in insurance and test it using data from a new module we designed and fielded in the Health and Retirement Study. We show that respondents subject to narrow framing are substantially less likely to buy long-term care insurance than average. This effect is distinct from, and much larger than, the effects of risk aversion or adverse selection, and it offers a new explanation for why people underinsure their later-life care needs.

JEL-codes: D03 G22 I13 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-age, nep-hea and nep-ias
Note: AG EH PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published as Daniel Gottlieb & Olivia S. Mitchell, 2020. "Narrow Framing and Long‐Term Care Insurance," Journal of Risk and Insurance, vol 87(4), pages 861-893.

Downloads: (external link)
http://www.nber.org/papers/w21048.pdf (application/pdf)

Related works:
Journal Article: Narrow Framing and Long‐Term Care Insurance (2020)
Working Paper: Narrow Framing and Long-Term Care Insurance (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:21048

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w21048

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().