2017 Fiscal Year Annual Research Report
Population Aging, Long-term Care, and Health Insurance Market: a General Equilibrium Life-Cycle Analysis(Fostering Joint International Research)
| Project/Area Number |
16KK0052
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| Research Institution | National Graduate Institute for Policy Studies |
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Principal Investigator |
Hsu Minchung 政策研究大学院大学, 政策研究科, 准教授 (20467062)
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| Project Period (FY) |
2016 – 2017
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| Keywords | long-term care / aging / Medicaid |
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| Outline of Annual Research Achievements |
In this project, we aim to investigate the importance of long-term care (LTC) in an aging society, including individual’s optimal choices, the role of family structure and the interaction between the LTC market and the aggregate economy. We have collected household level panel data (PSID/HRS/MEPS data sets) from the US that allows us to understand the demand of long-term care and to analyze the consumption/saving/medical care behaviors in old ages. We have also developed a life-cycle model with single and married households to analyze the behaviors of consumption, saving and long-term expenditures. We have also developed an approach to solve for the model numerically and a computer program to provide quantitative analysis by simulations.
We set our benchmark to the US economy, in which a means-tested public LTC insurance, Medicaid, provides a basic level of LTC for poor people. We have done a policy experiment on a reform of providing universal coverage of LTC and investigate the welfare implications.
We have presented our work at the Society of Economic Dynamics annual conference in Edinburg, UK and NTU macroeconomics in Taipei, Taiwan during 2017. We have scheduled to present the current findings at Society of Advanced Economic Theory annual meeting in June 2018 to exchange opinions with experts in this field.
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