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The Intergenerational Impact of Long-term Care Financing Alternatives in Spain

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  • Joan Costa-Font
  • Concepcio Patxot

Abstract

This paper examines the financial sustainability of long-term care funding options in Spain. We employ the generational accounting ("GA") methodology to evaluate the intertemporal impact of funding policies for long-term care services in the face of demographic change. Our findings suggest first that, although at present the system seems actuarially fair, the resources currently employed will be clearly insufficient to fund future needs, due to the demographic dependency of expenditures; second, that the specific tax instrument used to fund long-term care plays a less significant role. Conversely, the role of co-payment turns out to be key in offsetting the adverse effect of demography on the finances of the system. Copyright 2004 The International Association for the Study of Insurance Economics.

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Bibliographic Info

Article provided by The International Association for the Study of Insurance Economics in its journal The Geneva Papers.

Volume (Year): 29 (2004)
Issue (Month): 4 (October)
Pages: 599-619

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Handle: RePEc:bla:geneva:v:29:y:2004:i:4:p:599-619

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Cited by:
  1. Adelina Comas-Herrera & Alessandra di Maio & Alessandro Pozzi & Concepció Patxot & Cristiano Gori & Heinz Rothgang & Joan Costa i Font & Linda Pickard & Raphael Wittenberg, . "How Does Demography affect Long-Term Care Expenditures Projections?," Studies on the Spanish Economy 231, FEDEA.
  2. Joan Costa-Font & Raphael Wittenberg & Concepció Patxot & Adelina Comas-Herrera & Cristiano Gori & Alessandra di Maio & Linda Pickard & Alessandro Pozzi & Heinz Rothgang, 2008. "Projecting Long-Term Care Expenditure in Four European Union Member States: The Influence of Demographic Scenarios," Social Indicators Research, Springer, vol. 86(2), pages 303-321, April.
  3. Concepció Patxot & Elisenda Renteria & Miguel Sánchez Romero & Guadalupe Souto, 2012. "Measuring the balance of government intervention on forward and backward family transfers using NTA estimates: the modified Lee Arrows," MPIDR Working Papers WP-2012-015, Max Planck Institute for Demographic Research, Rostock, Germany.
  4. Costa-Font, Joan & Rovira-Forns, Joan, 2008. "Who is willing to pay for long-term care insurance in Catalonia?," Health Policy, Elsevier, vol. 86(1), pages 72-84, April.

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