 “Institutionalization aversion” and the willingness to pay for home health careJournal of Housing Economics, 2017, vol. 38, issue C, 62-69 Abstract: We examine the presence of a systematic preference for independent living at old age which we refer as “institutionalization aversion” (IA). Given that IA is not observable from revealed preferences, we draw on a survey experiment to elicit individuals’ willingness to pay (WTP) to avoid institutionalization (e.g., in a nursing home), using a single and double-bounded referendum WTP format. Our results suggest robust evidence of IA and reveal a willingness to pay of up to 16% of respondent's average income of individuals over fifty-five years of age. We find that the estimated willingness to pay to avoid institutionalization (€292) exceeds the amount respondents are willing to pay for home health care at old age in the event of a mild impairment (€222). WTP estimates vary with income, age and especially, respondents’ housing conditions. Finally, we test the sensitivity of our estimates to anchoring effects and ‘yea-saying’ biases. Keywords: Institutionalisation aversion; State-dependent preferences; Home health care; Willingness to pay; Caregiving; Referendum format (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:38:y:2017:i:c:p:62-69 DOI: 10.1016/j.jhe.2017.10.001 Access Statistics for this article Journal of Housing Economics is currently edited by H. O. Pollakowski More articles in Journal of Housing Economics from Elsevier |
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