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Long-term care: need, use and expenditure in the EU-27

Author

Listed:
  • Barbara Lipszyc
  • Etienne Sail
  • Ana Xavier

Abstract

Public provision of long-term care (LTC) will pose an increasing challenge to the sustainability of public finances in the EU, due to an ageing population. In this view, the paper aims to provide indications on the timing and potential fiscal impact associated to changes in the demographic structure. The ageing of the population is expected to put pressure on governments to provide long-term care services as (very) old people often develop multi-morbidity conditions, which require not only long-term medical care but assistance with a number of daily tasks. This paper presents the projections of public expenditure on LTC in the long run (2060) under alternative assumptions. All scenarios project a non-negligible increase in public expenditure. All other things being equal, the expected increase in the demand for formal LTC support will vary across EU-27 Member States according to their current patterns of LTC provision: the balance between formal and informal care, the emphasis they put on institutional care, home care or provision of cash benefits, the supply constraints both in the formal and informal care sectors, the current average cost and coverage rate for each type of care and their distribution across age groups. The paper also discusses policy implications of the projection results.

Suggested Citation

  • Barbara Lipszyc & Etienne Sail & Ana Xavier, 2012. "Long-term care: need, use and expenditure in the EU-27," European Economy - Economic Papers 2008 - 2015 469, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  • Handle: RePEc:euf:ecopap:0469
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    File URL: http://ec.europa.eu/economy_finance/publications/economic_paper/2012/ecp469_en.htm
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    Cited by:

    1. 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.
    2. Waverijn, Geeke & Heijmans, Monique & Groenewegen, Peter P., 2017. "Neighbourly support of people with chronic illness; is it related to neighbourhood social capital?," Social Science & Medicine, Elsevier, vol. 173(C), pages 110-117.
    3. Torben M. Andersen & Giuseppe Bertola & John Driffill & Harold James & Hans-Werner Sinn & Jan-Egbert Sturm & Branko Uroševic, 2016. "Chapter 2: Intergenerational Fairness," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 54-69, February.

    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • 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
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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