Asymmetric Information, Strategic Transfers, and the Design of Long-Term Care Policies
43 Pages Posted: 2 Dec 2020
Date Written: November 2020
Our theoretical analysis is completed by numerical solutions based on a calibrated example. In the uniform case, public care should represent up to 40% of total care but its share decreases to about 30% as the weight of children increases. In the nonlinear case, public care increases with the children's cost of providing care at a faster rate when children's weight in social welfare is higher. It represents 100% of total care for the families with high-cost children.
JEL Classification: H2, H5
Suggested Citation: Suggested Citation