Article

Means-tested long term care and family transfers

Helmuth Cremer et Pierre Pestieau

Résumé

One of the pervasive problems with means-tested public long term care (LTC) programs is their inability to prevent individuals who could afford private long term services from taking advantage of public care. They often manage to elude the means-test net through "strategic impoverishment". We show in a simple model how this problem comes about, how it affects welfare and how it can be mitigated.

Mots-clés

Long term care; means-testing; strategic impoverishment; opting out; public insurance; altruism;

Codes JEL

  • H2: Taxation, Subsidies, and Revenue
  • H5: National Government Expenditures and Related Policies

Remplace

Helmuth Cremer et Pierre Pestieau, « Means-tested long term care and family transfers », TSE Working Paper, n° 14-492, mai 2014.

Référence

Helmuth Cremer et Pierre Pestieau, « Means-tested long term care and family transfers », German Economic Review, vol. 19, n° 3, août 2018, p. 351–364.

Publié dans

German Economic Review, vol. 19, n° 3, août 2018, p. 351–364