Eliciting the Demand for Long Term Care Coverage: A Discrete Choice Modelling Analysis

31 Pages Posted: 22 May 2006

See all articles by Rinaldo Brau

Rinaldo Brau

Università di Cagliari - Department of Economics & Business; Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Matteo Lippi Bruni

University of Bologna - Department of Economics

Date Written: May 2006

Abstract

We evaluate the demand for long term care (LTC) insurance prospects in a stated preference context, by means of the results of a choice experiment carried out on a representative sample of the Emilia-Romagna population. Choice modelling techniques have not been used yet for studying the demand for LTC services. In this paper these methods are first of all used in order to assess the relative importance of the characteristics which define some hypothetical insurance programmes and to elicit the willingness to pay for some LTC coverage prospects. Moreover, thanks to the application of a nested logit specification with 'partial degeneracy', we are able to model the determinants of the preference for status quo situations where no systematic cover for LTC exists. On the basis of this empirical model, we test for the effects of a series of socio-demographic variables as well as personal and household health state indicators.

Keywords: Health Insurance, Long Term Care, Choice Experiments, Nested Logit Models

JEL Classification: I11, I18, H40, C25

Suggested Citation

Brau, Rinaldo and Lippi Bruni, Matteo, Eliciting the Demand for Long Term Care Coverage: A Discrete Choice Modelling Analysis (May 2006). FEEM Working Paper No. 71.2006, Available at SSRN: https://ssrn.com/abstract=903079 or http://dx.doi.org/10.2139/ssrn.903079

Rinaldo Brau (Contact Author)

Università di Cagliari - Department of Economics & Business ( email )

V. S. Ignazio 17
Cagliari 09123, CA 09123
Italy
+39 070 6753315 (Phone)
+39 178 2243016 (Fax)

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY

Matteo Lippi Bruni

University of Bologna - Department of Economics ( email )

Piazza Scaravilli, 2
40126 Bologna, 40126
Italy

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