Long-term care and myopic couples

[en] The paper proposes a theoretical model of long-term care (LTC) issues in the context of elderly spouses and studies public LTC policy optimal in that case. In particular, it focuses on myopia about the negative health effects of caregiving burden and, relatedly, on the interaction between this burden and the two spouses’ insurance coverage. Myopia results in an inefficiently high caregiving effort of the woman, who is the caregiver in the model. While under full information a linear caregiving tax can implement the first-best, unobservability of the woman’s caregiving might require the use of LTC insurance subsidies. Interestingly, myopia about negative caregiving effects implies a subsidy on the man’s but a tax on the woman’s insurance premium. Paradoxically, insurance against the woman’s LTC risk may be at odds with the protection of her health, which questions the popular tendency to emphasize more the importance of LTC insurance for women than for men. © 2019, Springer Science+Business Media, LLC, part of Springer Nature.

Disciplines :

Domaines particuliers de l’économie (santé, travail, transport...)

Auteur, co-auteur :

Klimaviciute, Justina ; Université de Liège - ULg

Langue du document :

Anglais

Titre :

Long-term care and myopic couples

Date de publication/diffusion :

2020

Titre du périodique :

International Tax and Public Finance

ISSN :

0927-5940

eISSN :

1573-6970

Maison d'édition :

Wolters Kluwer, Pays-Bas

Volume/Tome :

Fascicule/Saison :

Pagination :

77-102

Peer reviewed :

Peer reviewed vérifié par ORBi

Organisme subsidiant :

BELSPO - Politique scientifique fédérale

Disponible sur ORBi :

depuis le 02 décembre 2021

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0 (dont 0 ULiège)

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