Long term care insurance with state‐dependent preferences

Abstract

Cahier de recherche Working paperJanvier / January 2020 est une chaire multi-institutionnelle qui s'appuie sur un partenariat avec les organisations suivantes :Les opinions et analyses contenues dans les cahiers de recherche de la Chaire ne peuvent en aucun cas être attribuées aux partenaires ni à la Chaire elle-même et elles n'engagent que leurs auteurs.Opinions and analyses contained in the Chair's working papers cannot be attributed to the Chair or its partners and are the sole responsibility of the authors.

Housing in Medicaid: Should It Really Change?

“…De Donder and Leroux (2020) study theoretically the demand for long-term care insurance in a framework close to the one here.16 Similar results easily generalize to an intertemporal problem with more than two states.…”

The economics of long‐term care. An overview1

“…De Donder and Leroux (2021) indicate that if dependency decreases the marginal utility of daily life consumption, then there is less need for insurance. As they show, on the one hand, dependency creates additional expenses (LTC costs), which calls for buying insurance, but, on the other hand, if daily life consumption becomes less valuable when dependent, there is less incentive to transfer resources to the bad state of nature.…”

Long-term care insurance in Italy: medico-legal and socio-economic profiles

“…Relying solely on government welfare and social security is not sufficient in an aging society. Therefore, LTCI policies are crucial to provide stronger household support ( 9 ). Current LTC utilization faces challenges such as low demand, insufficient supply, and limited accessibility.…”