2016 Fiscal Year Final Research Report
Population Aging, Long-term Care, and Health Insurance Market: a General Equilibrium Life-Cycle Analysis
| Project/Area Number |
26780173
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Multi-year Fund |
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| Research Field |
Public finance/Public economy
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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) |
2014-04-01 – 2017-03-31
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| Keywords | Long-term care / Saving / Medicaid / Population Aging |
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| Outline of Final Research Achievements |
We build a life-cycle model with endogenous long term care (LTC) expenditures. The model includes both married and single households to capture the family structure that is important for precautionary savings and LTC decisions. Married individuals face the risk of a spouse needing LTC and quickly depleting joint assets.However, those needing LTC can benefit from the presence of a healthy spouse who provides informal care, lowering the costs of LTC. Based on the household-level data, HRS and MEPS, we use the calibrated model to estimate the importance of family dynamics and quantify the impacts of LTC policy reforms such as the provision of a universal public system that pays for a minimum level of LTC costs.
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| Free Research Field |
Public Economics, Macroeconomics, Health Economics
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