Page 158 - 臺大管理論叢第33卷第1期

Associations of Demand for Private Long-Term Care Insurance, Willingness to Pay, and Precautionary
Savings with Preferences for Long-Term Care Systems

future levels of LTC expenditure; such measurements pertain to behaviors associated with
the selection of a public LTC system. Moreover, to verify the role of self-choice financial
preferences in the choice of a public LTC system, we test our research hypotheses by
applying the theory of insurance economics to examine how individuals with self-choice

financial preferences select a public LTC system that can meet their daily needs or raise
the funds for LTC services. In addition, regarding reciprocal preferences and altruism
for families’ LTC service needs, we address several research hypotheses to examine how

individuals with different socioeconomic backgrounds select certain public LTC systems
needs, we address several research hypotheses to examine how individuals with
to plan for the aforementioned matters. In summary, we consider individuals’ self-choice
different socioeconomic backgrounds select certain public LTC systems to plan for the
financial preferences, reciprocal preferences, and altruism (as a global preference) to verify
aforementioned matters. In summary, we consider individuals’ self-choice financial
preferences, reciprocal preferences, and altruism (as a global preference) to verify the
the associations of these variables with the choice of a public LTC system; specifically,
associations of these variables with the choice of a public LTC system; specifically, to
to develop rigorous explicit models for four hypotheses, we explore prosocial behaviors
develop rigorous explicit models for four hypotheses, we explore prosocial behaviors
including a wide range of voluntary actions that are performed to help or benefit other
including a wide range of voluntary actions that are performed to help or benefit other
individuals or groups.
individuals or groups.

2. Methodology
2. Methodology
We adopt a quasi-experimental design and conduct a nationwide survey in
We adopt a quasi-experimental design and conduct a nationwide survey in Taiwan
Taiwan between January and April 2019 to collect the empirical data. The total number
between January and April 2019 to collect the empirical data. The total number of available
of available observations is 4,097. We estimate the effect of programs on the choice of
observations is 4,097. We estimate the effect of programs on the choice of a public LTC
a public LTC system by simultaneously considering various global preferences (namely
system by simultaneously considering various global preferences (namely three self-choice
three self-choice financial preferences and a reciprocal preference that includes
financial preferences and a reciprocal preference that includes altruism); specifically, we
altruism); specifically, we employ an ordered logistic model (OLM) to estimate the
employ an Ordered Logistic Model (OLM) to estimate the logistic marginal effects of the
logistic marginal effects of the independent variables of interest on the choice of a
independent variables of interest on the choice of a public LTC system. To fit the outcome
public LTC system. To fit the outcome variable with a 5-point Likert scale to create five
variable with a 5-point Likert scale to create five categories, the OLM is used to set four
categories, the OLM is used to set four thresholds (i.e., ~α ) to arrange choice
thresholds (i.e., α ~α ) to arrange choice behavior (Pub_LTC) in a sequential order (i.e., 1,
4
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4
1
behavior ( ) in a sequential order (i.e., 1, 2, …, 5); thus, we establish category
2, …, 5); thus, we establish category 1 as the selection of a tax-funded LTC 2.0 system and
1 as the selection of a tax-funded LTC 2.0 system and category 5 as the selection of a
category 5 as the selection of a mandatory public LTC insurance system. Our econometric
mandatory public LTC insurance system. Our econometric models are as follows:
models are as follows:
=1 if < ,
∗
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�
=2 if < < ,
∗
� � � �
=3 if < < ,
∗
�
�
�
�
=4 if < < ,
∗
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150
=5 if < .
∗
� � �
∗
�� � = | � = � = �� < ≤ �
��� �� �� ��� � �
� − j = 1,...,5 ,
�
= − − ��� ��
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���� ����
denotes Logistic Function, = /1 +
Moreover, the independent variables of interest comprise four types of preference
and can be sequentially arranged in econometric models. To verify whether reciprocal
preferences and altruism influence the choice of a public LTC system, the first
hypothesis is examined through Model 1; specifically, socioeconomic factors are
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