Long term care insurance and family norms
Long term care (LTC) is mainly provided by the family and subsidiarily by the market and the government. To understand the role of these three institutions it is important to understand the motives and the working of family solidarity. In this paper we focus on the case when LTC is provided by children to their dependent parents out of some norm that has been inculcated to them during their childhood by some exemplary behavior of their parents towards their own parents. In the first part, we look at the interaction between the family and the market in providing for LTC. The key parameters are the probability of dependence, the probability of having a norm-abiding child and the loading factor. In the second part, we introduce the government which has a double mission: correct for a prevailing externality and redistribute resources across heterogeneous households.
|Date of creation:||09 May 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Laurence J. Kotlikoff & Avia Spivak, 1979.
"The Family as an Incomplete Annuities Market,"
UCLA Economics Working Papers
151, UCLA Department of Economics.
- Alain Jousten & Barbara Lipszyc & Maurice Marchand & Pierre Pestieau, 2005.
"Long-term Care Insurance and Optimal Taxation for Altruistic Children,"
FinanzArchiv: Public Finance Analysis,
Mohr Siebeck, Tübingen, vol. 61(1), pages 1-, March.
- JOUSTEN, Alain & LIPSZYC, Barbara & MARCHAND, Maurice & PESTIEAU, Pierre, . "Long-term care insurance and optimal taxation for altruistic children," CORE Discussion Papers RP 1753, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- PESTIEAU, Pierre & SATO, Motohiro, 2004.
"Long term care: the state, the market and the family,"
CORE Discussion Papers
2004082, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Pierre Pestieau & Motohiro Sato, 2008. "Long-Term Care: the State, the Market and the Family," Economica, London School of Economics and Political Science, vol. 75(299), pages 435-454, 08.
- Hiedemann, Bridget & Stern, Steven, 1999.
"Strategic play among family members when making long-term care decisions,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 40(1), pages 29-57, September.
- Steven Stern & Bridget Hiedemann, 1999. "Strategic Play Among Family Members When Making Long-Term Care Decisions," Virginia Economics Online Papers 321, University of Virginia, Department of Economics.
- Bisin, Alberto & Verdier, Thierry, 2001.
"The Economics of Cultural Transmission and the Dynamics of Preferences,"
Journal of Economic Theory,
Elsevier, vol. 97(2), pages 298-319, April.
- Bisin, A. & Verdier, T., 1997. "The Economics of Cultural Transmission and the Dynamics of Preferences," DELTA Working Papers 97-03, DELTA (Ecole normale supérieure).
- Helmuth Cremer & Pierre Pestieau, 2011.
"Social Long Term Care Insurance and Redistribution,"
CESifo Working Paper Series
3452, CESifo Group Munich.
- Helmuth Cremer & Pierre Pestieau, 2014. "Social long-term care insurance and redistribution," International Tax and Public Finance, Springer, vol. 21(6), pages 955-974, December.
- CREMER, Helmuth & PESTIEAU, Pierre, 2011. "Social long term care insurance and redistribution," CORE Discussion Papers 2011024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Helmuth Cremer & Pierre Pestieau, 2014. "Social long-term care insurance and redistribution," Post-Print halshs-01157447, HAL.
- Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1985.
"The Strategic Bequest Motive,"
Journal of Political Economy,
University of Chicago Press, vol. 93(6), pages 1045-76, December.
- Kureishi, Wataru & Wakabayashi, Midori, 2010. "Why do first-born children live together with parents?," Japan and the World Economy, Elsevier, vol. 22(3), pages 159-172, August.
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2012017. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS)
If references are entirely missing, you can add them using this form.