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The economics of long-term care: a survey

  • CREMER, Helmuth
  • PESTIEAU, Pierre
  • PONTHIERE, Grégory

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.

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File URL: http://dx.doi.org/10.6027/TN2013-514
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers RP with number -2466.

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Handle: RePEc:cor:louvrp:-2466
Note: In : Nordic Economic Policy Review, 2/2012? 107-148, 2012
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  1. Darius Lakdawalla & Tomas Philipson, 2002. "The Rise in Old-Age Longevity and the Market for Long-Term Care," American Economic Review, American Economic Association, vol. 92(1), pages 295-306, March.
  2. Pierre Pestieau & Grégory Ponthière, 2010. "Long term care insurance puzzle," PSE Working Papers halshs-00564862, HAL.
  3. 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.
  4. Bisin, A. & Verdier, T., 1997. "The Economics of Cultural Transmission and the Dynamics of Preferences," DELTA Working Papers 97-03, DELTA (Ecole normale supérieure).
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  7. CANTA, Chiara & PESTIEAU, Pierre, 2012. "Long term care insurance and family norms," CORE Discussion Papers 2012017, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Cremer, Helmuth & Roeder, Kerstin, 2013. "Long-term care policy, myopia and redistribution," Journal of Public Economics, Elsevier, vol. 108(C), pages 33-43.
  9. Amy Finkelstein & Kathleen McGarry, 2006. "Multiple Dimensions of Private Information: Evidence from the Long-Term Care Insurance Market," American Economic Review, American Economic Association, vol. 96(4), pages 938-958, September.
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  13. Michelle Goeree & Bridget Hiedemann & Steven Stern, 2011. "Will You Still Want Me Tomorrow? The Dynamics of Families' Long-Term Care Arrangements," Working Papers 2011-035, Human Capital and Economic Opportunity Working Group.
  14. EECKHOUDT, Louis & MAHUL, Olivier & MORAN, John, . "Fixed-reimbursement insurance: basic properties and comparative statics," CORE Discussion Papers RP -1619, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  15. repec:cup:cbooks:9781107013940 is not listed on IDEAS
  16. 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).
  17. 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.
  18. Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203, March.
  19. Hoerger, Thomas J & Picone, Gabriel A & Sloan, Frank A, 1996. "Public Subsidies, Private Provision of Care and Living Arrangements of the Elderly," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 428-40, August.
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  22. Meier, Volker, 1999. "Why the Young Do Not Buy Long-Term Care Insurance," Journal of Risk and Uncertainty, Springer, vol. 18(1), pages 83-98, April.
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  24. repec:cup:cbooks:9780521715348 is not listed on IDEAS
  25. Liliana E. Pezzin & Robert A. Pollak & Barbara S. Schone, 2008. "Long-Term Care of the Disabled Elderly: Do Children Increase Caregiving by Spouses?," NBER Working Papers 14328, National Bureau of Economic Research, Inc.
  26. Grabowski, David C. & Gruber, Jonathan, 2007. "Moral hazard in nursing home use," Journal of Health Economics, Elsevier, vol. 26(3), pages 560-577, May.
  27. Grégory Ponthière, 2011. "Long-Term Care, Altruism and Socialization," PSE Working Papers halshs-00622385, HAL.
  28. repec:hal:wpaper:halshs-00622385 is not listed on IDEAS
  29. Stéphane Adam & Éric Bonsang & Sophie Germain & Sergio Perelman, 2007. "Retraite, activités non professionnelles et vieillissement cognitif. Une exploration à partir des données de Share," Économie et Statistique, Programme National Persée, vol. 403(1), pages 83-96.
  30. Sumit Agarwal & John C. Driscoll & Xavier Gabaix & David Laibson, 2007. "The Age of Reason: Financial Decisions Over the Lifecycle," NBER Working Papers 13191, National Bureau of Economic Research, Inc.
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  33. VALLETTA, Giacomo, 2012. "Health, fairness and taxation," CORE Discussion Papers 2012016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  34. Jeffrey R. Brown, 2007. "Rational and Behavioral Perspectives on the Role of Annuities in Retirement Planning," NBER Working Papers 13537, National Bureau of Economic Research, Inc.
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