BEGIN:VCALENDAR VERSION:2.0 PRODID:-//jEvents 2.0 for Joomla//EN CALSCALE:GREGORIAN METHOD:PUBLISH BEGIN:VEVENT UID:d03ef149870d7cdfdf7cca8e11b13dbb CATEGORIES:Seminars CREATED:20200120T110926 SUMMARY:CANCELLED: Jesús Bueren - European University Institute DESCRIPTION;ENCODING=QUOTED-PRINTABLE:

The Seminar has been c ancelled over concern about the COVID-19 virus outbreak

Long-Term Care Needs: Implications for Savings, Welfare, a nd Public Policy

Abstract:

Contrary to the predictions of standard li fe cycle models, individuals dissave slowly during retirement. I address th is puzzle by investigating the role of long-term care (LTC) needs as a determinant of the savings decisions of the elderly and quantify their importance relative to alternative explanations such as medical expenses and bequests. For this purpose, I develop and estimate a model for retired single individuals who are heterogeneous in their access to info rmal care and make an optimal choice of care hours bought in the market. In order to identify heterogeneity in LTC needs from LTC expenditu re choices, I model LTC needs using a dynamic latent variable model that summarizes the rich information co ntained in health surveys into four parsimonious health groups and estimate the model by matching hours of care conditional on health and i ncome groups. The main result is that LTC is a key driver of savings for th e high-income elderly and signif icantly more important than bequest motives and medical expenses. In addition, the model highlights the ine fficiencies of means-tested LTC programs and shows that 40% of the cross-country variation in dissaving rat es can be explained by differenc es in the provision of LTC by the public sector.

DTSTAMP:20260404T045126Z DTSTART:20200323T163000Z DTEND:20200323T180000Z SEQUENCE:0 TRANSP:OPAQUE END:VEVENT END:VCALENDAR