Evaluating Long-Term-Care Policy Options, Taking the Family Seriously*
| Autor: | Matthias Kredler, Daniel Barczyk |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Dynamic games
Economics and Econometrics media_common.quotation_subject Overlapping generations model Economía Long-term care Tax revenue C73 Margin (finance) 0502 economics and business Economics 050207 economics E6 050205 econometrics media_common J14 Actuarial science Public economics 05 social sciences Subsidy Altruism Labour supply D64 Welfare Medicaid |
| Zdroj: | e-Archivo. Repositorio Institucional de la Universidad Carlos III de Madrid instname |
| ISSN: | 1467-937X 0034-6527 |
| DOI: | 10.1093/restud/rdx036 |
| Popis: | We propose a dynamic non-cooperative framework for long-term-care (LTC) decisions of families and use it to evaluate LTC policy options for the U.S. We firs document the importance of informal caregiving and economic determinants of care arrangements. We then build a heterogeneous-agents model with imperfectly-altruistic overlapping generations to account for the patterns we find A key innovation is the availability of informal care (IC), which is determined through intra-family bargaining. This opens up a new margin in response to policy and allows for informal insurance through home-production of care. Our calibrated model captures the observed care arrangements well. We study the implications of non-means-tested IC and formal care (FC) subsidies as well as changes to means-tested Medicaid. We fin that IC responds strongly to these policies. An IC subsidy substantially reduces reliance on Medicaid, while the reduction of tax revenues due to lower labour supply by caregivers is modest. There are large welfare gains from a combination of IC and FC subsidies, even when combined with a reduction of the Medicaid program. M.K. acknowledges research funding by the Fundación Ramón Areces, by the Spanish Ministerio de Economía y Competitividad, grants [ECO2012-34581], [ECO2015-68615-P], and [MDM 2014-0431], and Comunidad de Madrid, MadEco-CM (S2015/HUM-3444). |
| Databáze: | OpenAIRE |
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