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Long-term care policy: a long-term challenge confronting government

Public policies concerning long-term care (LTC) differ between industrial countries, although all of them have been experiencing a marked increase in public LTC expenditure for years. This contribution first relates this increase to a particular exogenous change activating intergenerational moral hazard effects. These effects result from the interaction of a parent who decides about the amount of saving which determines the size of the bequest and a child who decides about the amount of informal care which lowers the probability of admission to a nursing home and hence protects the bequest.

Two reforms are considered, increased parental cost sharing in LTC expenditure and the stepping up (reintroduction, respectively) of inheritance taxation. Although both measures are predicted to induce more informal care benefiting older voters, they may be resisted by them as well as the younger ones. The conditions resulting in increased (decreased, respectively) overall political support for the two reforms are discussed in detail.

Art: Öffentliche Vortragsreihe "Economic Theory and Policy"
Von: 22.10.2018 17:00
Bis: 22.10.2018 18:00

TU Wien, Sem.R. DB gelb 04
(Wiedner Hauptstraße 8, gelber Bereich, 4. Stock)


TU Wien, Institut für Stochastik und Wirtschaftsmathematik, FG Ökonomie
Ansprechperson: Frau Schneider, 

Öffentlich: ja
Kostenpflichtig: nein
Anmeldung: nein