The Intergenerational Impact of Long-Term Care Financing Alternatives in Spain

Posted: 15 Oct 2004

See all articles by Joan Costa-Font

Joan Costa-Font

London School of Economics & Political Science (LSE)

Concepcio Patxot

University of Barcelona - Department of Economic Theory

Abstract

This paper examines the financial sustainability of long-term care funding options in Spain. We employ the generational accounting ("GA") methodology to evaluate the intertemporal impact of funding policies for long-term care services in the face of demographic change. Our findings suggest first that, although at present the system seems actuarially fair, the resources currently employed will be clearly insufficient to fund future needs, due to the demographic dependency of expenditures; second, that the specific tax instrument used to fund long-term care plays a less significant role. Conversely, the role of co-payment turns out to be key in offsetting the adverse effect of demography on the finances of the system.

Suggested Citation

Costa-Font, Joan and Patxot Cardoner, Concepcio, The Intergenerational Impact of Long-Term Care Financing Alternatives in Spain. Geneva Papers on Risk and Insurance: Issues and Practice, Vol. 29, No. 4, pp. 599-619, October 2004. Available at SSRN: https://ssrn.com/abstract=605150

Joan Costa-Font (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://https://joancostaifont.org/

Concepcio Patxot Cardoner

University of Barcelona - Department of Economic Theory ( email )

Barcelona
Spain

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