Elderly Support Policies as Resource Contingent Loans

Rafal Chomik and John Piggott
Additional contact information
Rafal Chomik: University of New South Wales

Chapter 15 in Income Contingent Loans, 2014, pp 172-179 from Palgrave Macmillan

Abstract: Abstract We broaden the idea of an income contingent loan to one which takes account of resources more generally — a resource contingent loan (RCL). We then use Australian policies and policy proposals directed towards the country’s ageing demographic to illustrate how the idea of an RCL is more general than might be thought at first sight. The Age Pension, and the proposal to use housing equity drawdown to finance aged care (a kind of reverse mortgage) are two policy paradigms that fit the pattern of an RCL. The emphasis on age-related programs is deliberate — demographic change implies increasing public expenditure relative to GDP, and policy designs which work to contain these outlays will become increasingly important as populations age.

Keywords: Moral Hazard; Aged Care; Adverse Selection; Home Equity; Housing Equity (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:pal:intecp:978-1-137-41320-8_16

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137413208

DOI: 10.1057/9781137413208_16

Access Statistics for this chapter

More chapters in International Economic Association Series from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().