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The multiplier effect from the development of a long-term care system for elderly citizens

Author

Listed:
  • Ivanna I. Deren

    (Vladimir Law Institute of the Federal Penitentiary Service, Vladimir, Russia)

  • Kseniya A. Samofatova

    (State University of Vladimir named after Alexander and Nikolay Stoletovs, Vladimir, Russia)

Abstract

Lately, the demand for long-term care for the elderly as well as the requirements to its quality have been increasing worldwide. The annual growth in the volume of state investment in the system of long-term care for the elderly generates multiplier effects for the development of certain types of activities in the services sector. The article aims to devise a method for calculating these effects. The methodological basis of the study is the Keynesian multiplier and institutional theory. Statistical and economic methods are applied. The paper performs calculations using the own method based on the Keynesian approach and including a system of linear equations. The data comes from twelve pilot social welfare institutions of the Stavropol krai (Russia). The authors formulate the own definitions to the concepts “multiplier effect in the long-term care system” and “multiplier of the development of the long-term care system (for services)”. According to the results of testing the suggested method, the annual increase in state investment funds allocated for the long-term care system leads to an increase in the expenditures of pilot institutions on various types of services (transport, utilities, education, communications, catering, cultural events, health resort treatment). The findings expand theoretical and practical knowledge about the peculiarities of determining the multiplier effect.

Suggested Citation

  • Ivanna I. Deren & Kseniya A. Samofatova, 2023. "The multiplier effect from the development of a long-term care system for elderly citizens," Journal of New Economy, Ural State University of Economics, vol. 24(2), pages 50-65, July.
    • Handle: RePEc:url:izvest:v:24:y:2023:i:2:p:50-65
    DOI: 10.29141/2658-5081-2023-24-2-3
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    References listed on IDEAS

    as
    1. Chen, An & Fuino, Michel & Sehner, Thorsten & Wagner, Joël, 2022. "Valuation of long-term care options embedded in life annuities," Annals of Actuarial Science, Cambridge University Press, vol. 16(1), pages 68-94, March.
    2. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-873, December.
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    More about this item

    Keywords

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    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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