|Title||Narrow framing and long‐term care insurance|
|Publication Type||Journal Article|
|Year of Publication||Forthcoming|
|Authors||Gottlieb, D, Mitchell, OS|
|Journal||Journal of Risk and Insurance|
|Keywords||Finances, 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 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.
|Short Title||Journal Risk and Insurance|