Long-term care social insurance. How to avoid big losses?

Pierre Pestieau and Justina Klimaviciute

No 11359, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Long-term care (LTC) needs are expected to rapidly increase in the next decades and at the same time the main provider of LTC, namely the family is stalling. This calls for more involvement of the state that today covers less than 20% of these needs and most often in an inconsistent way. Besides the need to help the poor dependent, there is a mounting concern in the middle class that a number of dependent people are incurring costs that could force them to sell all their assets. In this paper we study the design of a social insurance that meets this concern. Following Arrow (1963), we suggest a policy that is characterized by complete insurance above a deductible amount.

Keywords: Capped spending; Arrow's theorem; Long-term care insurance; Optimal taxation (search for similar items in EconPapers)
JEL-codes: H21 I13 J14 (search for similar items in EconPapers)
Date: 2016-07
New Economics Papers: this item is included in nep-age, nep-hea and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://cepr.org/publications/DP11359 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Long-term care social insurance: How to avoid big losses? (2018)
Working Paper: Long-term care social insurance: how to avoid big losses? (2018)
Working Paper: Long-term Care Social Insurance. How to Avoid Big Losses? (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:11359

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP11359

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().