Narrow Framing and Long-Term Care Insurance

Daniel Gottlieb () and Olivia Mitchell

Working Papers from University of Michigan, Michigan Retirement Research Center

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 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.

Pages: 32 pages
Date: 2015-06
New Economics Papers: this item is included in nep-age and nep-ias
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Citations: View citations in EconPapers (18)

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Related works:
Journal Article: Narrow Framing and Long‐Term Care Insurance (2020)
Working Paper: Narrow Framing and Long-Term Care Insurance (2015)
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