Home equity commitment and long-term care insurance demand

• 成果类型: Article
• 署名作者: Davidoff, Thomas
• 署名单位: University of California System; University of California Berkeley
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2009.09.006
• 发表日期: 2010
• 页码: 44-49
• 关键词: Health care markets; housing

摘要

This paper shows how home equity may Substitute for long-term care insurance (LTCI) The elderly commonly hold Substantial wealth in the form of home equity that is rarely spent before death, except for after moves to long-term care facilities Absent strong bequest motives implies that marginal utility fluctuates less across health states than one Would predict based on a standard model without wealth tied Lip in housing Numerical examples show that this asset commitment may substantially weaken LTCI demand (C) 2009 Elsevier B V All rights reserved