State tax subsidies to bolster the long-term care insurance market

David C. Nixon

Journal of Public Policy, 2014, vol. 34, issue 3, 415-436

Abstract: This paper examines long-term care insurance sales to assess whether state income tax subsidies are effective in encouraging the private purchase of long-term care insurance. Drawing from the most comprehensive available sales data on long-term care insurance policies, cross-state and over-time variation in sales data during the late 1990s and early 2000s are analysed. This analysis uses a panel model with fixed effects controls for potential endogeneity between state provision of tax subsidies and actual sales of long-term care insurance policies. Income, health and family support factors are significant determinants in the sale of long-term care insurance, but the tax incentives provided by many state governments do not induce any more sales of long-term care insurance than could be expected without such incentives. These costly subsidies have not been prudent uses of public dollars, and have not helped states cope with the challenge of long-term care costs.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
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:cup:jnlpup:v:34:y:2014:i:03:p:415-436_00

Access Statistics for this article

More articles in Journal of Public Policy from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().