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Public Subsidies, Private Provision of Care, and Living Arrangements of the Elderly

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Author Info
Hoerger, Thomas J.
Picone, Gabriel
Sloan, Frank

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Abstract

The authors examine the effects of public subsidies on the living arrangements of the disabled elderly who choose among living independently, living in an intergenerational household, and entering a nursing home. After quantifying effects of state policies on each arrangement, they estimate the model using multinominal probit and data from the National Long-Term Care Survey. Direct subsidies for nursing home care and state policies which limit nursing home beds or reimbursement significantly affect the choice of living arrangement. State policies which subsidize community living have little effect on nursing home entry, although they increase the probability of living independently.

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Publisher Info
Paper provided by Duke University, Department of Economics in its series Working Papers with number 95-22.

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Date of creation: 1995
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Publication status: Published in REVIEW OF ECONOMICS AND STATISTICS, Vol. 78, 1996, pages 428-440
Handle: RePEc:duk:dukeec:95-22

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Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
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Find related papers by JEL classification:
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped

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  1. Tarja K. Viitanen, 2007. "Informal and Formal Care in Europe," IZA Discussion Papers 2648, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Cameron, L. & Cobb-Clark, D., 2001. "Old-Age Support in Developing Countries: Labor Supply, Ingenerational Transfers and Living Arrangements," Department of Economics - Working Papers Series 773, The University of Melbourne. [Downloadable!]
  3. Lara Gardner & Donna Gilleskie, 2006. "The Effects of State Medicaid Policies on the Dynamic Savings Patterns of the Elderly," NBER Working Papers 12208, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Lisa Cameron & Deborah Cobb-Clark, 2008. "Do coresidency and financial transfers from the children reduce the need for elderly parents to works in developing countries?," Journal of Population Economics, Springer, vol. 21(4), pages 1007-1033, October. [Downloadable!] (restricted)
  5. Midori Wakabayashi & Charles Y. Horioka, 2006. "Is the Eldest Son Different? The Residential Choice of Siblings in Japan," NBER Working Papers 12655, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Naoko Shinkai, 2000. "¿De qué manera la seguridad social y el ingreso repercuten en los arreglos de vida de los ancianos? Elementos de juicio de las reformas de México y Uruguay," RES Working Papers 4232, Inter-American Development Bank, Research Department. [Downloadable!]
  7. Deborah Cobb-Clark & Lisa A Cameron, 2005. "Do Coresidency with and Financial Transfers from Children Reduce the Need for Elderly Parents to Work in Developing Countries?," CEPR Discussion Papers 508, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  8. Darius Lakdawalla & Tomas Philipson, 1999. "Aging and the Growth of Long-Term Care," NBER Working Papers 6980, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. David C. Grabowski & Jonathan Gruber, 2005. "Moral Hazard in Nursing Home Use," NBER Working Papers 11723, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Naoko Shinkai, 2000. "How Do Social Security and Income Affect the Living Arrangements of the Elderly? Evidence from Reforms in Mexico and Uruguay," RES Working Papers 4231, Inter-American Development Bank, Research Department. [Downloadable!]
  11. Miki Kohara & Fumio Ohtake, 2006. "Altruism and the Care of Elderly Parents: Evidence from Japanese Families," ISER Discussion Paper 0670, Institute of Social and Economic Research, Osaka University. [Downloadable!]
  12. Peter C. Coyte & Mark Stabile, 2001. "Household Responses to Public Home Care Programs," NBER Working Papers 8523, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Matteo Lippi Bruni & Cristina Ugolini, 2006. "A Note on the Choice between Formal and Informal Care for Elderly People," Swiss Journal of Economics and Statistics (SJES), Special Issues, Swiss Society of Economics and Statistics (SSES), vol. 142(S (specia), pages 85-90. [Downloadable!]
  14. Jochen Michaelis & Melanie Arntz & Alexander Spermann, 2005. "Die Reform der Pflegeversicherung - weniger Kostendruck durch flexiblere Pflegearrangements?," Discussion Papers in Economics 71/05, University of Kassel, Institute of Economics. [Downloadable!]
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