Public vs private demand for covering long term care expenditures

Rinaldo Brau (1, 2) , Matteo Lippi Bruni (3, 4) , Anna Maria Pinna (5, 6)

1 Department of Economics
2 CRENoS
3 Department of Economics
4 Centre for Household, Income, Labour and Demographic Economics (CHILD)
5 Economics
6 Dip. Ricerche Economiche e Sociali

This paper studies the determinants of the willingness to pay (WTP) for long term care (LTC) insurance coverage. Two alternatives are considered, one compulsory, financed through taxes, the other purchased on a voluntary basis and paid through a premium. WTP was elicited through open-ended contingent valuation within a survey conducted in the Italian region Emilia-Romagna about LTC population needs. We model information on individual WTP as a two-stage process, where respondents first establish their interest for LTC cover, then state their WTP. Results show that interest and WTP are influenced by different variables, and that differences arise also between the WTP for public and private coverage.

Mots clés: Social Sciences & Humanities

Rinaldo Brau, Matteo Lippi Bruni, Anna Maria Pinna. Public vs private demand for covering long term care expenditures. Applied Economics, 2009, 42 (28), pp.3651. ⟨10.1080/00036840802167343⟩. ⟨hal-00582152⟩