Double Crowding-Out Effects of Means-Tested Public Provision for Long-Term Care

Risks

Christophe Courbage¹  Peter Zweifel² 

[1] The Geneva Association, 53 route de Malagnou, 1208 Geneva, Switzerland;Emeritus, Department of Economics, University of Zurich, Kreuth 371, 9531 Bad Bleiberg, Austria; E-Mail:

关键词: long-term care;    crowding out;    informal care;    saving;    means testing;   

DOI  :  10.3390/risks3010061

来源: mdpi

【 摘 要 】

Publicly provided long-term care (LTC) insurance with means-tested benefits is suspected to crowd out either private saving or informal care. This contribution predicts crowding-out effects for both private saving and informal care for policy measures designed to relieve the public purse from LTC expenditure such as more stringent means testing and increased taxation of inheritance. These effects result from the interaction of a parent who decides on the amount of saving in retirement and a caregiver who decides on the effort devoted to informal care which lowers the probability of admission to a nursing home. Double crowding-out effects are also found to be the consequence of exogenous influences, notably a higher opportunity cost of caregiving.

【 授权许可】

CC BY   
© 2015 by the authors; licensee MDPI, Basel, Switzerland.