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Demand of long‐term care and benefit eligibility across European countries

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  • Ludovico Carrino
  • Cristina Elisa Orso
  • Giacomo Pasini

Abstract

In this paper, we study how elderly individuals adjust their informal long‐term care utilization to changes in the provision of formal care. Despite this is crucial to design effective policies of formal elderly care, empirical evidence is scant due to the lack of credible identification strategies to account for the endogeneity of formal care. We propose a novel instrument, an index that captures individuals' eligibility status for the long‐term care programs implemented in the region of residence. Our estimates, which are robust to a number of different specifications, suggest that higher formal care provision would lead to an increase in informal care utilization as well. In the context of current theoretical economic model of care use, this result points to the existence of a substantial unmet demand of care among older people in Europe.

Suggested Citation

  • Ludovico Carrino & Cristina Elisa Orso & Giacomo Pasini, 2018. "Demand of long‐term care and benefit eligibility across European countries," Health Economics, John Wiley & Sons, Ltd., vol. 27(8), pages 1175-1188, August.
    • Handle: RePEc:wly:hlthec:v:27:y:2018:i:8:p:1175-1188
    DOI: 10.1002/hec.3665
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    Cited by:

    1. Elsa Perdrix & Quitterie Roquebert, 2020. "Does an increase in formal care affect informal care? Evidence among the French elderly," Working Papers of BETA 2020-02, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Elsa Perdrix & Quitterie Roquebert, 2020. "Does an increase in formal care affect informal care? Evidence among the French elderly," Working Papers halshs-02370689, HAL.
    3. Carrino, L.; & Nafilyan, V.; & Avendaño Pabon, M.;, 2019. "Should I Care or Should I Work? The Impact of Working in Older Age on Caregiving," Health, Econometrics and Data Group (HEDG) Working Papers 19/23, HEDG, c/o Department of Economics, University of York.

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    More about this item

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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