Long-term care and capital accumulation: the impact of the State, the market and the family

Chiara Canta (), Pierre Pestieau and Emmanuel Thibault

Economic Theory, 2016, vol. 61, issue 4, No 6, 755-785

Abstract: Abstract The rising level of long-term care (LTC) expenditures and their financing sources are likely to impact savings and capital accumulation and henceforth the pattern of growth. This paper studies how the joint interaction of the family, the market and the State influences capital accumulation and welfare in a society in which the assistance the children give to dependent parents is triggered by a family norm. We find that with a family norm in place, the dynamics of capital accumulation differ from those of a standard Diamond (Am Econ Rev 55:1126–1150, 1965) model with dependence. For instance, if the family help is sizeably more productive than other LTC financing sources, pay-as-you-go social insurance might be a complement to private insurance and foster capital accumulation.

Keywords: Long-term care; Capital accumulation; Family norms; Public insurance (search for similar items in EconPapers)
JEL-codes: D13 E22 H55 I13 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (26)

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Related works:
Working Paper: Long-term Care and Capital Accumulatn: the Impact of the State, the Market and the Family (2016)
Working Paper: Long-term care and capital accumulation: the impact of the State, the market and the family (2016)
Working Paper: Long term care and capital accumulation: the impact of the State, the market and the family (2014)
Working Paper: Long term care and capital accumulation: the impact of the State, the market and the family (2014)
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DOI: 10.1007/s00199-016-0957-4

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