Chapter 16. Health and Long-Term Care

This chapter summarizes the recent economic literature on health and long-term care as it relates to population aging. The profound demographic changes taking place in developed countries will require changes in how societies provide and pay for long-term care. Both the supply side and the demand side of the health care markets are undergoing change. This chapter provides a review of the main economic theories and empirical findings about the supply of and demand for long-term care, primarily among the elderly. It also reviews the main features and problems with insurance markets and quality of care. There is a short section that explains new promising data sets available for researchers. This chapter concludes with questions for future research.