Document de travail

Long-Term Care Insurance: Information Frictions and Selection

Martin Boyer, Philippe De Donder, Claude Fluet, Marie-Louise Leroux et Pierre-Carl Michaud

Résumé

We conduct 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. We find that information frictions are pervasive. We measure the welfare losses associated with these three causes in a framework that also allows for selection. We show that information frictions reduce equilibrium take-up and lead to large welfare loss while selection plays little role.

Mots-clés

Long-term care insurance; adverse selection; stated-preference; health; insurance;

Remplacé par

Martin Boyer, Philippe De Donder, Claude Fluet, Marie-Louise Leroux et Pierre-Carl Michaud, « Long-Term Care Insurance: Information Frictions and Selection », American Economic Journal: Economic Policy, 2020, à paraître.

Référence

Martin Boyer, Philippe De Donder, Claude Fluet, Marie-Louise Leroux et Pierre-Carl Michaud, « Long-Term Care Insurance: Information Frictions and Selection », TSE Working Paper, n° 19-1034, septembre 2019.

Voir aussi

Publié dans

TSE Working Paper, n° 19-1034, septembre 2019