Long-Term Care: the State, the Market and the Family
Article first published online: 9 JUL 2007
© The London School of Economics and Political Science 2007
Volume 75, Issue 299, pages 435–454, August 2008
How to Cite
PESTIEAU, P. and SATO, M. (2008), Long-Term Care: the State, the Market and the Family. Economica, 75: 435–454. doi: 10.1111/j.1468-0335.2007.00615.x
- Issue published online: 16 JUL 2008
- Article first published online: 9 JUL 2007
- Final version received 4 October 2006.
In this paper we study the optimal design of a long term care policy in a setting that includes three types of care to dependent parents: public nursing, private nursing and assistance in time by children. Private nursing can be financed either by financial aid from children or by private insurance. The social planner can use a number of instruments: public nursing, subsidy to aiding children, subsidy to private insurance premiums, all financed by a flat tax on earnings.