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Means-tested long term care and family transfers

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  • Cremer, Helmuth
  • Pestieau, Pierre

Abstract

One of the pervasive problems with means-tested public long term care (LTC) programs is their inability to prevent individuals who could afford private long term services from taking advantage of public care. They often manage to elude the means-test net through "strategic impoverishment". We show in a simple model how this problem comes about, how it affects welfare and how it can be mitigated.

Suggested Citation

  • Cremer, Helmuth & Pestieau, Pierre, 2014. "Means-tested long term care and family transfers," TSE Working Papers 14-492, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:28219
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    References listed on IDEAS

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    Cited by:

    1. Cremer, Helmuth & Klimaviciute, Justina & Pestieau, Pierre, 2021. "A political economy of loose means-testing in targeted social programs," Economics Letters, Elsevier, vol. 202(C).
    2. Pestieau, Pierre & Ponthiere, Gregory, 2016. "The public economics of long term care," CEPR Discussion Papers 11365, C.E.P.R. Discussion Papers.
    3. Justina Klimaviciute & Sergio Perelman & Pierre Pestieau & Jerome Schoenmaeckers, 2017. "Caring for dependent parents: Altruism, exchange or family norm?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 835-873, July.

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    More about this item

    Keywords

    Long term care; means-testing; strategic impoverishment; opting out; public insurance; altruism;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies

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