학술논문
Double Crowding-Out Effects of Means-Tested Public Provision for Long-Term Care
Document Type
article
Author
Source
Risks, Vol 3, Iss 1, Pp 61-76 (2015)
Subject
Language
English
ISSN
2227-9091
Abstract
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.