IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-28910-9_5.html
   My bibliography  Save this book chapter

Long-Term Care Insurance, Savings, and Strategic Bequests

In: European Economies in Transition

Author

Listed:
  • Oliver Fabel
  • Daniela Georgus

Abstract

This study reviews the theoretical arguments put forth to explain market failure in the provision of private long-term care (LTC) insurance and describes the relevant stylized facts as they apply to Germany. It then develops a simple principal-agent model of intra-family strategic bequest/care exchanges. Within this framework the risk-relief effect associated with mandatory LTC-insurance — as introduced in Germany in 1995 — is seen to induce a decrease in the private savings of parents. Very likely total accumulated wealth, including insurance claims, is also depressed. At the same time, strategic bequest/care exchanges will be observed less frequently over all consumer groups and the level of expected bequests tends to be decreased as well. Interestingly however, care for parents who are LTC patients will become more common.

Suggested Citation

  • Oliver Fabel & Daniela Georgus, 2000. "Long-Term Care Insurance, Savings, and Strategic Bequests," Palgrave Macmillan Books, in: Oliver Fabel & Francesco Farina & Lionello F. Punzo (ed.), European Economies in Transition, chapter 5, pages 111-130, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28910-9_5
    DOI: 10.1057/9780230289109_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-28910-9_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.