Financing long-term care: ex-ante, ex-post or both?

Costa-Font, Joan ORCID: 0000-0001-7174-7919, Courbage, Christophe and Swartz, Ketherine (2014) Financing long-term care: ex-ante, ex-post or both? CESifo Working Paper (WP5104). Center for Economic Studies and Ifo Institute, Munich, Germany.

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Abstract

This paper examines the heterogeneity in the public financing of long-term care (LTC), and the wide-ranging instruments in place to finance long-term care services. We distinguish and classify the institutional responses to the need for LTC financing as ex-ante (occurring prior to when the need arises, such as insurance) and ex-post (occurring after the need arises, such as public sector and family financing). Then we examine country-specific data to ascertain whether the two types of financing are complements or substitutes. Finally, we examine exploratory cross-national data on public expenditure determinants, specifically economic, demographic and social determinants. We show that although both ex-ante and ex-post mechanisms exist in all countries with advanced industrial economies and despite the fact that instruments are different across countries, ex-ante and ex-post instruments are largely substitutes for each other. Expenditure estimates to date indicate that the public financing of long-term care is highly sensitive to a country’s income, ageing of the population, and the availability of informal caregiving.

Item Type:	Monograph (Working Paper)
Official URL:	http://www.cesifo-group.de/
Additional Information:	© 2014 The Authors, Center for Economic Studies and Ifo Institute
Divisions:	European Institute Social Policy Centre for Economic Performance Health Policy
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HV Social pathology. Social and public welfare. Criminology R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine
JEL classification:	H - Public Economics > H5 - National Government Expenditures and Related Policies > H50 - General I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy; Regulation; Public Health J - Labor and Demographic Economics > J1 - Demographic Economics > J10 - General
Date Deposited:	19 Dec 2014 12:03
Last Modified:	11 Dec 2024 19:15
URI:	http://eprints.lse.ac.uk/id/eprint/60560

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