| Summary: | 碩士 === 國立臺灣大學 === 經濟學研究所 === 88 === Given very limited size of the current private long-term care (LTC) insurance market, it is difficult to predict the consumers'' response to the new insurance product.By applying the contingent valuation method to investigate the individual''s willingness to pay for LTC insurance, our study has expanded the scope of studying new insurance product literature.
Using data collected from the 1998 and 1999 surveys on "Health and Insurance",we estimate the model of the willingness to pay (WTP) for LTC insurance to test the hypothesis of adverse selection, moral hazard, and bequest motives.
Our results indicate that the classical problem of adverse selection may exists, which may limit the size of private LTC insurance market.Our results also suggest a plausible picture of the exchange bequest motive. Nonetheless, as population aging and less children for the future generation in Taiwan,
the negative relationship between the presence of children and the WTP for LTC insurance implies the demand for LTC insurance will increase. Based on the current findings, the government interference in the LTC insurance market is in order.
In addition to single equation estimations for each of 1998 and 1999 samples, we provide evidence on the reliability of the CV method based on the results of a bivariate estimation;a "Chow test" also shows that the effects of the important factors are stable over time.
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