Are substitute services a barrier to controlling long-term care expenditures?

Mark Kattenberg () and Pieter Bakx
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Mark Kattenberg: CPB Netherlands Bureau for Economic Policy Analysis
Pieter Bakx: EUR

No 382, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: In many developed countries long-term care expenditures are a major source of concern, which has urged policy makers to cost reductions. However, long-term care financing is highly fragmented in most countries and hence reducing total costs is complicated: spending reductions in one type of care may have spillover effects elsewhere in the system. These spillovers may be substantial, as we show using a reform in the financing of one type of publicly financed home care in the Netherlands, domestic help. We show that this reform not only affected consumption of this care type, but also the consumption of three other types of long-term care that are financed through another public scheme.

JEL-codes: C26 I10 (search for similar items in EconPapers)
Date: 2018-09
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Citations: View citations in EconPapers (1)

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