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The economics of long-term care: a survey

Author

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  • CREMER, Helmuth

    () (Toulouse School of Economics (IDEI, GREMAQ and Iuf), France)

  • PESTIEAU, Pierre

    () (Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium; CREPP, Université de Liège, Belgium; IDEI, Toulouse School of Economics, France)

  • PONTHIERE, Grégory

    () (Ecole Normale Supérieure, Paris - Paris School of Economics)

Abstract

This paper surveys recent theoretical economic research on long term care (LTC). LTC differs from health care: it is about nursing; it is mostly provided by unpaid caregivers (mainly spouses and children), whereas both the market and the State play a modest role. The future of LTC appears to be gloomy: sustained population ageing and recent societal trends (e.g., children's mobility, changes in family values) generate a mounting demand on the State and on the market to provide alternatives to the family. In this paper, we review these causes, and the extent to which we can expect them to fade away in the future. We then turn to the design of a sustainable public LTC scheme integrating both the market and the family.

Suggested Citation

  • CREMER, Helmuth & PESTIEAU, Pierre & PONTHIERE, Grégory, 2012. "The economics of long-term care: a survey," CORE Discussion Papers 2012030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2012030
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    References listed on IDEAS

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    Cited by:

    1. Chiara Canta & Pierre Pestieau & Emmanuel Thibault, 2016. "Long-term care and capital accumulation: the impact of the State, the market and the family," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(4), pages 755-785, April.
    2. Matteo Lippi Bruni & Cristina Ugolini, 2016. "Delegating home care for the elderly to external caregivers? An empirical study on Italian data," Review of Economics of the Household, Springer, vol. 14(1), pages 155-183, March.
    3. Cremer Helmuth & Gahvari Firouz & Pestieau Pierre, 2013. "Endogenous Altruism, Redistribution, and Long-Term Care," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 499-524, July.
    4. Helmuth Cremer & Pierre Pestieau, 2014. "Social long-term care insurance and redistribution," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(6), pages 955-974, December.
    5. Canta, Chiara & Cremer, Helmuth, 2018. "Uncertain altruism and non-linear long-term care policies," IDEI Working Papers 887, Institut d'Économie Industrielle (IDEI), Toulouse.
    6. Cremer, Helmuth & Lozachmeur, Jean-Marie & Pestieau, Pierre, 2016. "The design of long term care insurance contracts," Journal of Health Economics, Elsevier, vol. 50(C), pages 330-339.
    7. Siciliani Luigi, 2013. "The Economics of Long-Term Care," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 343-375, August.
    8. Cremer, Helmuth & Pestieau, Pierre & Roeder, Kerstin, 2016. "Social long-term care insurance with two-sided altruism," Research in Economics, Elsevier, vol. 70(1), pages 101-109.
    9. Barigozzi, Francesca & Cremer, Helmuth & Roeder, Kerstin, 2017. "Caregivers in the Family: Daughters, Sons and Social Norms," IZA Discussion Papers 10862, Institute for the Study of Labor (IZA).
    10. Canta, Chiara & Cremer, Helmuth & Gahvari, Firouz, 2016. "Maybe "honor thy father and thy mother": uncertainfamily aid and the design of social long term care insurance," TSE Working Papers 16-685, Toulouse School of Economics (TSE).
    11. repec:kap:geneva:v:42:y:2017:i:2:d:10.1057_s10713-016-0018-8 is not listed on IDEAS
    12. Pierre Pestieau & Grégory Ponthière, 2015. "Long-term care and births timing," PSE Working Papers halshs-01131236, HAL.
    13. Pestieau, Pierre & Ponthiere, Gregory, 2016. "The public economics of long term care," CEPR Discussion Papers 11365, C.E.P.R. Discussion Papers.
    14. Canta, Chiara & Cremer, Helmuth, 2018. "Uncertain altruism and non-linear long-term care policies," IDEI Working Papers 887, Institut d'Économie Industrielle (IDEI), Toulouse.
    15. Pestieau, Pierre & Ponthiere, Gregory, 2016. "Long-term care and births timing," Journal of Health Economics, Elsevier, vol. 50(C), pages 340-357.
    16. Atsushi Miyake & Masaya Yasuoka, 2016. "Which Should the Government Subsidize: Child Care or Elderly Care?," Discussion Paper Series 144, School of Economics, Kwansei Gakuin University, revised Jun 2016.
    17. Marie-Louise Leroux & Grégory Ponthiere, 2016. "Nursing Home Choice, Family Bargaining and Optimal Policy in a Hotelling Economy," Cahiers de recherche 1604, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    18. repec:kap:itaxpf:v:25:y:2018:i:1:d:10.1007_s10797-017-9445-4 is not listed on IDEAS
    19. James Gaughan & Hugh Gravelle & Luigi Siciliani, 2014. "Testing the bed-blocking hypothesis: does higher supply of nursing and care homes reduce delayed hospital discharges?," Working Papers 102cherp, Centre for Health Economics, University of York.
    20. Pierre Pestieau & Grégory Ponthière, 2015. "Long-term care and births timing," Working Papers halshs-01131236, HAL.
    21. repec:eee:pubeco:v:151:y:2017:i:c:p:12-24 is not listed on IDEAS
    22. Paolo Melindi-Ghidi & Willem Sas, 2015. "Invest as You Go: How Public Health Investment Keeps Pension Systems Healthy," Working Papers halshs-01171701, HAL.
    23. Klimaviciute, Justina & Pestieau, Pierre, 2016. "Long-term care social insurance. How to avoid big losses?," CEPR Discussion Papers 11359, C.E.P.R. Discussion Papers.
    24. Cremer, Helmuth & Gahvari, Firouz & Pestieau, Pierre, 2017. "Uncertain altruism and the provision of long term care," Journal of Public Economics, Elsevier, vol. 151(C), pages 12-24.
    25. Masaya Yasuoka, 2017. "Elderly Care Service in an Aging Society," Discussion Paper Series 168, School of Economics, Kwansei Gakuin University, revised Oct 2017.

    More about this item

    Keywords

    long term care; social insurance; dependence; family solidarity;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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