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Financial literacy and long-term care insurance coverage

Gousia, Katerina (2014) Financial literacy and long-term care insurance coverage. In: International Long-term Care Policy Network Conference 2014, 31 August - 3 September 2014, LSE, London.

Abstract

This study assesses the impact of financial literacy on private long-term care insurance coverage as one potential explanation of the small size of the private insurance market. Findings from the recent literature suggest that financial literacy has a significant effect on a number of individual financial decisions. The analysis uses the SHARE dataset that contains rich information on demographic, health and socioeconomic characteristics of the elderly in Europe. More importantly, SHARE also contains information on current private insurance coverage and measures of current and past financial literacy levels. To account for the potentially endogenous relationship between insurance coverage and financial literacy an instrumental variables approach is used. Preliminary evidence indicates that financial literacy is important and those with more advanced knowledge are more likely to hold private insurance. The robustness of this result will be checked against different specifications of the model.

Item Type: Conference or workshop item (Paper)
Subjects: H Social Sciences > HG Finance
Divisions: Faculties > Social Sciences > School of Social Policy Sociology and Social Research > Personal Social Services Research Unit
Faculties > Social Sciences > School of Social Policy Sociology and Social Research > Centre for Health Services Studies
Depositing User: Katerina Gousia
Date Deposited: 20 Jan 2015 14:53 UTC
Last Modified: 10 Jun 2019 11:43 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/46760 (The current URI for this page, for reference purposes)
Gousia, Katerina: https://orcid.org/0000-0002-2494-786X
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