eprintid: 25679
rev_number: 18
eprint_status: archive
userid: 1482
importid: 105
dir: disk0/00/02/56/79
datestamp: 2018-04-16 15:28:12
lastmod: 2021-04-02 15:57:23
status_changed: 2019-10-10 12:55:21
type: monograph
metadata_visibility: no_search
creators_name: Canta, Chiara
creators_name: Cremer, Helmuth
creators_idrefppn: 058485376
title: Long-term care policy with nonlinear strategic bequests
ispublished: pub
subjects: subjects_ECO
abstract: We study the design of long-term care (LTC) policy when children differ in their cost of providing informal care. Parents do not observe this cost, but they can commit to a "bequests rule" specifying a transfer conditional on the level of informal care. Care provided by high-cost children is distorted downwards in order to minimize the rent of low-cost ones. Social LTC insurance is designed to maximize a weighted sum of parents' and children's utility. The optimal uniform public LTC provision strikes a balance between insurance and children's utility. Under decreasing absolute risk aversion less than full insurance is provided to mitigate the distortion on informal care which reduces children's rents. A nonuniform policy conditioning LTC benefits on bequests provides full insurance even against the risk of having children with a high cost of providing care. Quite surprisingly the level of informal care induced by the optimal (uniform or nonuniform) policy always increases in the children's' welfare weight.
date: 2017-09
date_type: published
publisher: TSE Working Paper
official_url: http://tse-fr.eu/pub/31970
faculty: tse
divisions: tse
keywords: Long-term care
keywords: informal care
keywords: strategic bequests
keywords: asymmetric information
language: en
has_fulltext: TRUE
subjectsJEL: JEL_H2
subjectsJEL: JEL_H5
subjectsJEL: JEL_J14
view_date_year: 2017
full_text_status: public
monograph_type: working_paper
series: TSE Working Paper
volume: 17-839
place_of_pub: Toulouse
pages: 69
institution: Université Toulouse 1 Capitole
department: Toulouse School of economics
book_title: TSE Working Paper
oai_identifier: oai:tse-fr.eu:31970
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harvester_local_overwrite: faculty
harvester_local_overwrite: subjectsJEL
harvester_local_overwrite: institution
harvester_local_overwrite: place_of_pub
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harvester_local_overwrite: publish_to_hal
harvester_local_overwrite: pending
harvester_local_overwrite: creators_idrefppn
oai_lastmod: 2019-09-23T09:33:29Z
oai_set: tse
site: ut1
publish_to_hal: FALSE
citation:   Canta, Chiara and Cremer, Helmuth <https://www.idref.fr/058485376>  (2017) Long-term care policy with nonlinear strategic bequests.  TSE Working Paper, n. 17-839, Toulouse     
document_url: https://publications.ut-capitole.fr/id/eprint/25679/1/wp_tse_839.pdf