Costa-Font, Joan 
ORCID: 0000-0001-7174-7919
(2017)
"Institutionalization aversion” and the willingness to pay for home health care.
Journal of Housing Economics, 38.
pp. 62-69.
ISSN 1051-1377
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Abstract
We examine the presence of a systematic preference for independent living at old age which we refer as “institutionalization aversion” (IA). Given that IA is not observable from revealed preferences, we draw on a survey experiment to elicit individuals’ willingness to pay (WTP) to avoid institutionalization (e.g., in a nursing home), using a double-bounded referendum WTP format. Our results suggest robust evidence of IA and reveal a willingness to pay of up to 16% of respondent’s (individuals over fifty-five years of age) average income. We find that estimates of the willingness to pay to avoid institutionalization (or €292 at the time of the study) exceed the amount respondents are willing to pay for home health care at old age in the event of a mild impairment (€222). WTP estimates vary with income, age and especially, respondents’ housing conditions. Finally, we test the sensitivity of our estimates to anchoring effects and ‘yea-saying’ biases.
| Item Type: | Article |
|---|---|
| Official URL: | https://www.journals.elsevier.com/journal-of-housi... |
| Additional Information: | © 2017 Elsevier © CC BY-NC-ND |
| Divisions: | Social Policy Health Policy |
| Subjects: | H Social Sciences > HV Social pathology. Social and public welfare. Criminology R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine |
| Date Deposited: | 13 Oct 2017 12:03 |
| Last Modified: | 01 Nov 2024 04:26 |
| URI: | http://eprints.lse.ac.uk/id/eprint/84647 |
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