Means-tested long-term care and family transfers

Cremer, Helmuth;Pestieau, Pierre
(2018) German Economic Review — Vol. 19, n° 3, p. 351-364 (2018)

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Authors
  • Cremer, HelmuthToulouse School of Economics
    Author
  • Pestieau, PierreUCLouvain
    Author
Abstract
One of the pervasive problems with means-tested public long-term care 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.
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Cremer, H., & Pestieau, P. (2018). Means-tested long-term care and family transfers. German Economic Review, 19(3), 351-364. https://doi.org/10.1111/geer.12132 (Original work published 2018)