) the comparison of the degree of risk aversion for consumption and for LTC expenditures, and (iii) the income level of …

investigates to what extent attitudes toward uncertainty (risk and ambiguity) and time preferences (impatience) can explain the low … effect of impatience increases to 15 - 17 percentage points for subjects with strong risk exposure and subjects who believe … that the insurance will actually pay out an indemnity in case of a (valid) claim. The effects of risk aversion and …

-effective LTC. Providing insurers with appropriate incentives for efficiency without jeopardizing access for high-risk individuals … requires, among other things, an adequate system of risk adjustment. While risk adjustment is now widely adopted in health … insurance, it is unclear whether adequate risk adjustment is feasible for LTC because of its specific features. We examine the …

(LTCI). We build a multi-state lifecycle model that includes longevity risk and health shocks. The preference is represented … by a recursive utility function that separates risk aversion and elasticity of intertemporal substitution (EIS). When … health shocks are considered, a higher level of risk aversion lowers the annuity demand, while a lower level of the EIS has …