IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/4155.html
   My bibliography  Save this paper

An Economic Analysis of Life Care

Author

Listed:
  • Jonathan S. Feinstein
  • Edward G. Keating

Abstract

Life care communities offer long term care to the elderly in the context of a residential community. Residents move into a life care community while still relatively young (though typically past age 65), initially occupying an independent living unit situated in a living complex similar to a retirement community. Later, when a resident requires more intensive care, she moves to an on-site nursing facility. We present an economic analysis of the life care industry. Our model includes a detailed specification of elderly couples' utility, a description of elderly morbidity and mortality experiences, and a formulation of the life care contract. Using extensive computer simulations we show that life care offers two main advantages to elderly as compared with stand-alone nursing homes: (i) reduced mobility costs and nearness to spouse and friends when sick; and (ii) insurance, linked to a rebate paid to the couple's heirs. We also investigate regulation of life care and the effects stemming from the risk of operator bankruptcy.

Suggested Citation

  • Jonathan S. Feinstein & Edward G. Keating, 1992. "An Economic Analysis of Life Care," NBER Working Papers 4155, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:4155
    Note: HE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w4155.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hurd, Michael D, 1990. "Research on the Elderly: Economic Status, Retirement, and Consumption and Saving," Journal of Economic Literature, American Economic Association, vol. 28(2), pages 565-637, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jonathan Feinstein, 1996. "Elderly Health, Housing, and Mobility," NBER Chapters,in: Advances in the Economics of Aging, pages 275-320 National Bureau of Economic Research, Inc.
    2. Edward Keating, 1999. "Government contracting options: A model and application," Defence and Peace Economics, Taylor & Francis Journals, vol. 10(2), pages 191-223.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:4155. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: () or (Joanne Lustig). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.