Means-tested long term care and family transfers


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One of the pervasive problems with means-tested public long term care (LTC) programs is their inability to prevent individuals who could a¤ord private long term services from taking advantage of public care. They often manage to elude the means-test net through “strategic impoverishment”. We show in a simple model how this problem comes about, how it a¤ects welfare and how it can be mitigated.


  • Helmuth Cremer and Pierre Pestieau

Toulouse School of Economics
Chaire SCOR "“Marché des risques et création de valeur”"

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