Narrow Framing and Long-Term Care Insurance /

We propose a model of narrow framing in insurance and test it using data from a new module we designed and fielded in the Health and Retirement Study. We show that respondents subject to narrow framing are substantially less likely to buy long-term care insurance than average. This effect is distinc...

Ausführliche Beschreibung

Gespeichert in:
1. Verfasser:
Gottlieb, Daniel
Körperschaft:
National Bureau of Economic Research
Weitere Verfasser:
Mitchell, Olivia S.
Format:
Elektronisch E-Book
Sprache:
Englisch
Veröffentlicht:
Cambridge, Mass. National Bureau of Economic Research 2015.
Zusammenfassung:
We propose a model of narrow framing in insurance and test it using data from a new module we designed and fielded in the Health and Retirement Study. We show that respondents subject to narrow framing are substantially less likely to buy long-term care insurance than average. This effect is distinct from, and much larger than, the effects of risk aversion or adverse selection, and it offers a new explanation for why people underinsure their later-life care needs.
Umfang:
1 online resource: illustrations (black and white);
Anmerkungen:
March 2015.
Schlagworte: