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Long-term care insurance with family altruism : theory and empirics

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      <subfield code="a">Klimaviciute, Justina</subfield>
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      <subfield code="a">Long-term care insurance with family altruism </subfield>
      <subfield code="b">: theory and empirics</subfield>
      <subfield code="c">Justina Klimaviciute, Pierre Pestieau, Jérôme Schoenmaeckers</subfield>
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      <subfield code="a">This article studies long-term care (LTC) insurance in the presence of family altruism. We first explore whether family solidarity affects the application of Arrow's (1963) deductible theorem, shown to apply in models without family in earlier work. We find that Arrow's theorem generally holds, but departures from the standard model exist. Our analysis highlights complex interplay between parents' insurance and children's aid, implying that some intuitive conjectures are not always verified. For instance, while one expects deductible to increase with children's altruism, this is unambiguously confirmed only under certain conditions.We then study empirically the relation between LTC insurance and children's altruism using data from Health and Retirement Study (HRS).</subfield>
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      <subfield code="t">The Journal of risk and insurance</subfield>
      <subfield code="d">Nueva York : The American Risk and Insurance Association, 1964-</subfield>
      <subfield code="x">0022-4367</subfield>
      <subfield code="g">01/12/2020 Volumen 87 Número 4 - diciembre 2020 , p. 895-918</subfield>
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