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More on the optimal demand for long-term care insurance
unpublished
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In a model where individuals run the risk of becoming dependant, we analyse the demand for LTC and for long term care insurance. Our model, by taking into account intergenerational phenomena and altruism behavior, pays a special attention to the role of intra-family moral hazard and to the concern that individuals may have for their informal care givers' well-being. We first highlight the conditions under which the presence of informal care givers modifies the demand for long term care
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