Long-Term Care Insurance: Information Frictions and Selection

• 成果类型: Article
• 署名作者: Boyer, M. Martin; De Donder, Philippe; Fluet, Claude; Leroux, Marie-Louise; Michaud, Pierre-Carl
• 署名单位: Universite de Montreal; HEC Montreal; Centre National de la Recherche Scientifique (CNRS); Universite de Toulouse; Universite Toulouse 1 Capitole; Toulouse School of Economics; Laval University; University of Quebec; University of Quebec Montreal; Universite de Montreal; HEC Montreal; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20180227
• 发表日期: 2020
• 页码: 134-169
• 关键词: health-insurance; Annuities; demand; Heterogeneity; MARKETS; welfare; CHOICE; needs

摘要

This paper conducts a stated-choice experiment where respondents are asked to rate various insurance products aimed to protect against financial risks associated with long-term care needs. Using exogenous variation in prices from the survey design and individual cost estimates, these stated-choice probabilities are used to predict market equilibrium for long-term care insurance. Our results are twofold. First, information frictions are pervasive. Second, measuring the welfare losses associated with frictions in a framework that also allows for selection, it is found that information frictions reduce equilibrium take-up and lead to large welfare losses, while selection plays little role.