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.

从理论上讲，流动性差的住房可能会代替长期护理保险（LTCI），因为退休人员主要是在转向长期护理设施时会减少住房财富。在本文中，我建立并估算了一个丰富的单退休人员生命周期模型，以评估住房流动性对LTCI需求的影响是否很大。总体而言，我发现通过增加住房的流动性来增加LTCI需求的前景非常有限，因为住房流动性的大幅增加都会导致LTCI需求的适度增长。我还发现住房流动性对人寿年金需求的影响有限。最后，我证明了用于合理化反向抵押贷款低利率使用的遗赠动机类型通常与对LTCI的低利率不一致，