Family Spillovers of Long-Term Care Insurance

32 Pages Posted: 25 Aug 2015

See all articles by Norma Coe

Norma Coe

University of Pennsylvania - Perelman School of Medicine

Gopi Shah Goda

Stanford University

Courtney Van Houtven

Duke University

Date Written: August 2015

Abstract

We examine how long-term care insurance (LTCI) affects family outcomes expected to be sensitive to LTCI, including utilization of informal care and spillover effects on children. An instrumental variables approach allows us to address the endogeneity of LTCI coverage. LTCI coverage induces less informal caregiving, suggesting the presence of intra-family moral hazard. We also find that children are less likely to co-reside or live nearby parents with LTCI and more likely to work full-time, suggesting that significant economic gains from private LTCI could accrue to the younger generation.

Suggested Citation

Coe, Norma and Goda, Gopi Shah and Van Houtven, Courtney, Family Spillovers of Long-Term Care Insurance (August 2015). NBER Working Paper No. w21483. Available at SSRN: https://ssrn.com/abstract=2649779

Norma Coe (Contact Author)

University of Pennsylvania - Perelman School of Medicine ( email )

423 Guardian Drive
Philadelphia, PA 19104
United States

Gopi Shah Goda

Stanford University ( email )

SIEPR
366 Galvez St.
Stanford, CA 94305
United States
6507360480 (Phone)

Courtney Van Houtven

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

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