Effect of public long-term care insurance on consumption, medical care demand, and welfare
Many governments allocate public funds to individuals who need long-term care (LTC) services as a result of chronic illnesses and functional problems. In this paper, I investigate the effects of two common eligibility criteria of LTC programs: means-tested and health-based programs. I find that publicly provided health-based LTC crowds out the medical spending among low health individuals. Furthermore, means-tested programs lead to higher initial spending on medical care and consumption goods among middle-wealth individuals. The welfare implications of these programs also depend critically upon the individuals' initial wealth and health status. Interestingly, it is possible for health-based programs to be less costly than means-tested programs.
Year of publication: |
2008
|
---|---|
Authors: | Ariizumi, Hideki |
Published in: |
Journal of Health Economics. - Elsevier, ISSN 0167-6296. - Vol. 27.2008, 6, p. 1423-1435
|
Publisher: |
Elsevier |
Keywords: | Long-term care Public long-term care insurance Dynamic programming |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Stand together or alone? : family structure and the business cycle in Canada
Ariizumi, Hideki, (2015)
-
Teen families, welfare transfers, and the minimum wage : evidence from Canada
Sen, Anindya, (2013)
-
Do changes in cigarette taxes impact youth smoking? : evidence from Canadian provinces
Sen, Anindya, (2010)
- More ...