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Means-Tested Long-Term Care and Family Transfers

Author

Listed:
  • Cremer Helmuth

    (Toulouse School of Economics, University of Toulouse 1 Capitole,Toulouse, France)

  • Pestieau Pierre

    (CREPP, University of Liège,Liège, Belgium)

Abstract

One of the pervasive problems with means-tested public long-term care programs is their inability to prevent individuals who could afford private long-term services from taking advantage of public care. They often manage to elude the means-test net through ‘strategic impoverishment’. We show in a simple model how this problem comes about, how it affects welfare and how it can be mitigated.

Suggested Citation

  • Cremer Helmuth & Pestieau Pierre, 2018. "Means-Tested Long-Term Care and Family Transfers," German Economic Review, De Gruyter, vol. 19(3), pages 351-364, August.
    • Handle: RePEc:bpj:germec:v:19:y:2018:i:3:p:351-364
    DOI: 10.1111/geer.12132
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    Cited by:

    1. Xiaoyu Wang & Wenze Tian & Guohui Zhan & Yiming He, 2025. "The Impact of Long-Term Care Insurance on Intergenerational Interaction Behavior Change in China," Journal of Family and Economic Issues, Springer, vol. 46(2), pages 613-631, June.
    2. Cremer, Helmuth & Klimaviciute, Justina & Pestieau, Pierre, 2021. "A political economy of loose means-testing in targeted social programs," Economics Letters, Elsevier, vol. 202(C).
    3. PESTIEAU, Pierre & PONTHIERE, Gregory, 2016. "The Public Economics of Long Term Care," LIDAM Discussion Papers CORE 2016008, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Justina Klimaviciute & Sergio Perelman & Pierre Pestieau & Jerome Schoenmaeckers, 2017. "Caring for dependent parents: Altruism, exchange or family norm?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 835-873, July.

    More about this item

    Keywords

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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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