Long term care insurance and family norms

Chiara Canta () and Pierre Pestieau

No 2012017, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: Long term care (LTC) is mainly provided by the family and subsidiarily by the market and the government. To understand the role of these three institutions it is important to understand the motives and the working of family solidarity. In this paper we focus on the case when LTC is provided by children to their dependent parents out of some norm that has been inculcated to them during their childhood by some exemplary behavior of their parents towards their own parents. In the first part, we look at the interaction between the family and the market in providing for LTC. The key parameters are the probability of dependence, the probability of having a norm-abiding child and the loading factor. In the second part, we introduce the government which has a double mission: correct for a prevailing externality and redistribute resources across heterogeneous households.

Keywords: norm transmission; long term care; health insurance; optimal taxation (search for similar items in EconPapers)
JEL-codes: D91 H23 I13 (search for similar items in EconPapers)
Date: 2012-05-09
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Long-Term Care Insurance and Family Norms (2013)
Working Paper: Long-Term Care Insurance and Family Norms (2013)
Working Paper: Long-Term Care Insurance and Family Norms (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2012017

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