Jousten, Alain
[Verfasser:in]
;
Lipszyc, Barbara
[Sonstige Person, Familie und Körperschaft];
Marchand, Maurice
[Sonstige Person, Familie und Körperschaft];
Pestieau, Pierre
[Sonstige Person, Familie und Körperschaft]
Long-Term Care Insurance and Optimal Taxation for Altruistic Children
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 1, 2003 erstellt
Beschreibung:
We model long-term care insurance in an optimal taxation framework. Every adult decides upon the amount and type of care he purchases for his dependent parent. We consider two alternatives: nursing-home care provided by the government and home-care paid by the child with some lump-sum subsidy by the government. The only source of information asymmetry stems from the governments inability to observe the degree of altruism of the adult child for his/her parent. Further tax collection entails some social costs. In such a second best setting, we show that the quality of institutional care has to be kept relatively low and that compared to altruistic children, non-altruistic ones enjoy a high level of consumption