We study the role of social long term care (LTC) insurance when income taxation and private insurance markets are imperfect. Policy instruments include public provision of LTC as well as a subsidy on private insurance. The subsidy scheme may be linear or nonlinear. For the linear part we...

European economic integration leads to increasing factor mobility, thereby threatening the stability of social transfer programs. This paper investigates the possibility of achieving, by means of voluntary matching grants, both the optimal allocation of factors and the optimal level of...