In this paper we test the 'red herring' hypothesis for expenditures on long-term care. The main contribution of this paper is that we assess the 'red herring' hypothesis using an aggregated measure that allows us to control for entering the final period of life on the individual level. In...

Old age was never a problem in India. Old age homes were alien in concept and elder abuse was considered a Western problem. As life expectancy has increased from 41 years in 1951 to 64 years today, hundreds of old age homes have sprung up in India. Neglect of parents has become a big issue, so...