NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Narrow Framing and Long-Term Care Insurance

Daniel Gottlieb, Olivia S. Mitchell

NBER Working Paper No. 21048
Issued in March 2015
NBER Program(s):Aging, Health Care, Public Economics

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.

download in pdf format
   (455 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w21048

Users who downloaded this paper also downloaded* these:
Ameriks, Briggs, Caplin, Shapiro, and Tonetti w20973 Long-Term-Care Utility and Late-in-Life Saving
Gottlieb and Smetters w18601 Narrow Framing and Life Insurance
Doyle, Graves, and Gruber w21050 Uncovering Waste in U.S. Healthcare
Coe, Goda, and Van Houtven w21483 Family Spillovers of Long-Term Care Insurance
Black, Devereux, Lundborg, and Majlesi w21043 Learning to Take Risks? The Effect of Education on Risk-Taking in Financial Markets
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us