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

associations of these variables with the choice of a public LTC system; specifically, to
2. Methodology four hypotheses, we explore prosocial behaviors
develop rigorous explicit models for
We adopt a quasi-experimental design and conduct a nationwide survey in
including a wide range of voluntary actions that are performed to help or benefit other
Taiwan between January and April 2019 to collect the empirical data. The total number
individuals or groups.

of available observations is 4,097. We estimate the effect of programs on the choice of
2. Methodology
a public LTC system by simultaneously considering various global preferences (namely
We adopt a quasi-experimental design and conduct a nationwide survey in
three self-choice financial preferences and a reciprocal preference that includes
Taiwan between January and April 2019 to collect the empirical data. The total number
altruism); specifically, we employ an ordered logistic model (OLM) to estimate the
of available observations is 4,097. We estimate the effect of programs on the choice of
logistic marginal effects of the independent variables of interest on the choice of a
a public LTC system by simultaneously considering various global preferences (namely
public LTC system. To fit the outcome variable with a 5-point Likert scale to create five
three self-choice financial preferences and a reciprocal preference that includes
categories, the OLM is used to set four thresholds (i.e., ~α ) to arrange choice
4
altruism); specifically, we employ an ordered logistic model (OLM) to estimate the
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behavior ( ) in a sequential order (i.e., 1, 2, …, 5); thus, we establish category
logistic marginal effects of the independent variables of interest on the choice of a
1 as the selection of a tax-funded LTC 2.0 system and category 5 as the selection of a
public LTC system. To fit the outcome variable with a 5-point Likert scale to create five
mandatory public LTC insurance system. Our econometric models are as follows:
categories, the OLM is used to set four thresholds (i.e., ~α ) to arrange choice
4
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=1 if < ,
∗
NTU Management Review Vol. 33 No. 1 Apr. 2023
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behavior ( ) in a sequential order (i.e., 1, 2, …, 5); thus, we establish category
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1 as the selection of a tax-funded LTC 2.0 system and category 5 as the selection of a
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mandatory public LTC insurance system. Our econometric models are as follows:
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Moreover, the independent variables of interest comprise four types of preference
and can be sequentially arranged in econometric models. To verify whether reciprocal
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and can be sequentially arranged in econometric models. To verify whether reciprocal
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preferences and altruism influence the choice of a public LTC system, the first
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denotes Logistic Function, =
preferences and altruism influence the choice of a public LTC system, the first hypothesis
/1 +
hypothesis is examined through Model 1; specifically, socioeconomic factors are
investigated to obtain estimations of choice behavior. Alternatively, to determine
Moreover, the independent variables of interest comprise four types of preference
is examined through Model 1; specifically, socioeconomic factors are investigated to
whether the three self-choice financial related preferences influence the choice of a
43
and can be sequentially arranged in econometric models. To verify whether reciprocal

obtain estimations of choice behavior. Alternatively, to determine whether the three
public LTC system, several hypotheses are examined. The second hypothesis is
preferences and altruism influence the choice of a public LTC system, the first
self-choice financial related preferences influence the choice of a public LTC system,
examined through Model 2; specifically, the demand for private LTC insurance is
hypothesis is examined through Model 1; specifically, socioeconomic factors are
several hypotheses are examined. The second hypothesis is examined through Model 2;
investigated to obtain estimations of choice behavior. The third hypothesis is examined
43
specifically, the demand for private LTC insurance is investigated to obtain estimations
through Model 3; specifically, the willingness to pay for LTC services is investigated

of choice behavior. The third hypothesis is examined through Model 3; specifically,
to obtain estimations of choice behavior. The fourth hypothesis is examined through
the willingness to pay for LTC services is investigated to obtain estimations of choice
Model 4; specifically, precautionary savings for LTC services are investigated to obtain
behavior. The fourth hypothesis is examined through Model 4; specifically, precautionary
estimations of choice behavior.
savings for LTC services are investigated to obtain estimations of choice behavior.

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3. Findings
151
We present the significant characteristics of the groups that select a mandatory
public LTC insurance system and those that choose a tax-funded LTC system; the
findings could also serve as a basis for improving the social welfare of Taiwanese
people under Taiwan’s tax-funded LTC 2.0 system. Specifically, we discover that
respondents who exhibit higher levels of the three self-choice finance behaviors tend to
prefer the mandatory public LTC insurance system. The individuals in this group are
predominantly male, married, working-class, aged between 40 and 64 years, earning
less than NT$1,990,000 annually, genuinely concerned about their longevity risk, and
anxious about having to make a series of future LTC payments. By contrast, the
individuals who choose a tax-funded LTC system predominantly earn more than
NT$2,000,000 annually, have more family members (e.g., more than three members),
and mainly reside in Taiwan’s northern (Taipei and New Taipei), central (Taichung and
44