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Informal and formal care for disabled elderly individuals. Substitutes or complements?

Author

Listed:
  • Perelman, Sergio

    (Université de Liège)

  • Pestieau, Pierre

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

Abstract

The relationship between informal and formal care for disabled elderly individuals -whether they function as substitutes or complements- represents a fundamental question for optimizing public resource allocation in aging societies. We develop a theoretical framework demonstrating that long-term care (LTC) policy design hinges critically on this relationship. Using data from the Survey of Health, Ageing and Retirement in Europe (SHARE), we provide empirical evidence to address this pivotal question.

Suggested Citation

  • Perelman, Sergio & Pestieau, Pierre, 2025. "Informal and formal care for disabled elderly individuals. Substitutes or complements?," LIDAM Discussion Papers CORE 2025016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2025016
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    References listed on IDEAS

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    Cited by:

    1. Pestieau, Pierre, 2026. "The economics of long-term care," LIDAM Discussion Papers CORE 2026001, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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    JEL classification:

    • H - Public Economics
    • I - Health, Education, and Welfare

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