@article {11407,
	title = {Housing liquidity and long-term care insurance demand: A quantitative evaluation},
	journal = {Journal of Public Economics},
	volume = {194},
	year = {2021},
	pages = {104353},
	abstract = {In theory, illiquid housing may substitute for long-term care insurance (LTCI) as retirees decumulate housing wealth mainly when moving to long-term care facilities. In this paper, I build and estimate a rich life-cycle model of single retirees in order to evaluate whether the impact of housing liquidity on LTCI demand is large. Overall, I find that the prospects of increasing LTCI demand by making housing more liquid are quite limited, as even large increases in housing liquidity generate modest increases in LTCI demand. I also find a limited impact of housing liquidity on the demand for life annuities. Finally, I show that the types of bequest motives used to rationalize the low take-up of reverse mortgages are generally inconsistent with the low demand for LTCI, suggesting that other factors may play a role in this low take-up of reverse mortgages.},
	keywords = {Housing, Insurance, Life-cycle, Liquidity, Long-term Care, Retirement},
	isbn = {0047-2727},
	doi = {https://doi.org/10.1016/j.jpubeco.2020.104353},
	author = {Achou, Bertrand}
}
