| Title | Narrow Framing and Long-Term Care Insurance |
| Publication Type | Report |
| Year of Publication | 2015 |
| Authors | Gottlieb, D, Mitchell, OS |
| Institution | Cambridge, MA, National Bureau of Economic Research |
| Keywords | Employment and Labor Force, Medicare/Medicaid/Health Insurance, Net Worth and Assets, Risk Taking |
| Abstract | 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. |
| Endnote Keywords | narrow framing/long term care insurance/risk Aversion/adverse selection |
| Endnote ID | 999999 |
| Citation Key | 5893 |
