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Distributive Implications of Long Term Care Policies: An International Comparison




Using a microsimulation model for Italy, we discuss the effects on the distribution of income of a Long Term Care (LTC) scheme. We consider eight alternative options for financing the scheme taken from the most relevant international experiences (Germany, Luxembourg and Japan) and from the current Italian debate: these options include general taxation, a new tax proportional to income (with or without a ceiling), a tax on income for people older than 40, a tax proportional to a broader measure of the economic conditions of the family and indirect taxation. In particular, we show that by including wealth in a means testing we get important intergenerational distributive effects. We also discuss the implications of two alternative choices for the distribution of beneficiaries: both the current distribution in the major Italian LTC program and that of the current German scheme turn out to have a powerful distributive impact.

Suggested Citation

  • Baldini, Massimo & Beltrametti, Luca, 2007. "Distributive Implications of Long Term Care Policies: An International Comparison," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(1), pages 1-31.
  • Handle: RePEc:ris:ecoint:0063

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    Cited by:

    1. Zucchelli, E & Jones, A.M & Rice, N, 2010. "The evaluation of health policies through microsimulation methods," Health, Econometrics and Data Group (HEDG) Working Papers 10/03, HEDG, c/o Department of Economics, University of York.

    More about this item


    Long-term-care; distributive implications; microsimulation; international comparisons;

    JEL classification:

    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies


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