Willigness to Pay for Long-Term Care Coverage: the Role of Private Information and Self-Insurance

Joan Costa-Font and Juan Rovira Forns
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Juan Rovira Forns: Universitat de Barcelona

No 124, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia

Abstract: Both public and private insurance for long-term care is undeveloped in some European countries such as in Spain and empirical evidence is still limited. This paper aims at examining the determinants of the demand for Long Term Care (LTC) coverage in Spain using contingent valuation techniques. Our findings indicate that only one-fifth of the population is willing to pay to assure coverage for LTC expenditures although we find high price elasticity. LTC coverage decisions are significantly affected by private information asymmetry and housing tenure in giving rise to self-insurance reduces the probability of insurance being hypothetically purchased.

JEL-codes: D63 D78 H43 I11 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2004
New Economics Papers: this item is included in nep-hea, nep-ias and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:bar:bedcje:2004124

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