Long-Term Care, Altruism and Socialization

Pré-publication, Document de travail: The public provision of long-term care (LTC) can replace family-provided LTC when adults are not sufficiently altruistic towards their elderly parents. But State intervention can also modify the transmission of values and reduce the long-run prevalence of family altruism in the population. That evolutionary effect questions the desirability of the LTC public provision. To characterize the optimal LTC policy, we develop a three-period OLG model where the population is divided into altruistic and non-altruistic agents, and where the transmission of (non) altruism takes place through a socialization process à la Bisin and Verdier (2001). The optimal short-run and long-run LTC policies are shown to differ, to an extent varying with the particular socialization mechanism at work.

Auteur(s)

Grégory Ponthière

Date de publication
  • 2011
Mots-clés JEL
I12 I18 J14 Z13
Mots-clés
  • Long-term care
  • Altruism
  • Socialization
  • Optimal policy
  • Crowding out effect
Référence interne
  • PSE Working Papers n°2011-31
Version
  • 1