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Internal rates of return of the German statutory long-term care insurance

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  • Häcker, Jasmin
  • Raffelhüschen, Bernd

Abstract

Presuming an ageing population, every introduction of a pay-as-you-go scheme causes intergenerational redistribution in favor of the first generations and to the burden of young and future generations. Using the concept of internal rates of return we want to examine the extent to which the first generations drew an introductory benefit from the implementation of the German statutory long-term care insurance as an unfunded system. Furthermore, a comparison between the internal rates of return will show firstly to what extent different generations are burdened by having to redeem the implicit debt, and secondly which generations are involved in paying back the introductory gain.

Suggested Citation

  • Häcker, Jasmin & Raffelhüschen, Bernd, 2005. "Internal rates of return of the German statutory long-term care insurance," FZG Discussion Papers 5, University of Freiburg, Research Center for Generational Contracts (FZG).
    • Handle: RePEc:zbw:fzgdps:5
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    References listed on IDEAS

    as
    1. Hagist, Christian & Klusen, Norbert & Plate, Andreas & Raffelhüschen, Bernd, 2005. "Social Health Insurance: the major driver of unsustainable fiscal policy?," Discussion Papers 133, Albert-Ludwigs-Universität Freiburg, Institut für Finanzwissenschaft.
    2. Christian Hagist & Norbert Klusen & Andreas Plate & Bernd Raffelhüschen, 2005. "Social Health Insurance - the Major Driver of Unsustainable Fiscal Policy?," CESifo Working Paper Series 1574, CESifo.
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    5. Stefan Fetzer & Bernd Raffelhüschen & Lara Slawik, 2005. "Wie viel Gesundheit wollen wir uns eigentlich leisten?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 58(18), pages 03-07, September.
    6. Häcker, Jasmin & Raffelhüschen, Bernd, 2005. "Wider besseren Wissens: Zur Finanzierbarkeit Demenzkranker in der Gesetzlichen Pflegeversicherung," Discussion Papers 127, Albert-Ludwigs-Universität Freiburg, Institut für Finanzwissenschaft.
    7. Hans-Werner Sinn, 2000. "Why a Funded Pension System is Needed and Why It is Not Needed," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 7(4), pages 389-410, August.
    8. Hagist, Christian & Klusen, Norbert & Plate, Andreas & Raffelhüschen, Bernd, 2005. "Social health insurance: The major driver of unsustainable fiscal policy?," FZG Discussion Papers 1, University of Freiburg, Research Center for Generational Contracts (FZG).
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    More about this item

    Keywords

    Long-Term Care Insurance; Internal Rate of Return; Demography;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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