Author
Listed:
- Bertrand Achou
(HEC Montréal - HEC Montréal)
- Philippe de Donder
(TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CNRS - Centre National de la Recherche Scientifique)
- Franca Glenzer
(HEC Montréal - HEC Montréal)
- Minjoon Lee
(University of Ottawa [Ottawa])
- Marie-Louise Leroux
(UPR AIDA - Agroécologie et intensification durables des cultures annuelles - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement, IITA Kenya - International Institute of Tropical Agriculture - IITA - International Institute of Tropical Agriculture [Nigeria] - CGIAR - Consultative Group on International Agricultural Research [CGIAR])
Abstract
Marginal utility of spending when needing long-term care, and the related incentives for precautionary savings and insurance, may vary significantly by whether one receives care at home or in a nursing home. In this paper, we develop strategic survey questions to estimate those differences. All else equal, we find that the marginal utility of spending (net of the minimum cost of care) is significantly higher when receiving care at home rather than in a nursing home. Using an illustrative calibrated life-cycle model with these LTC-setting-specific preferences, we obtain that the higher marginal utility of spending under home care generates stronger precautionary savings incentives and a higher valuation of home care subsidies relative to nursing homes. Overall, our results suggest that shifts (e.g., due to Covid) leading to a stronger preference for home care could significantly increase savings as well as the benefits of allocating resources to long-term care.
Suggested Citation
Bertrand Achou & Philippe de Donder & Franca Glenzer & Minjoon Lee & Marie-Louise Leroux, 2026.
"At home versus in a nursing home: Long-term care settings and marginal utility,"
Post-Print
hal-05519483, HAL.
Handle:
RePEc:hal:journl:hal-05519483
DOI: 10.1016/j.jedc.2025.105254
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