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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