Long-term care insurance and bequests as instruments for shaping intergenerational relationships
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Long-term care insurance and bequests as instruments for shaping intergenerational relationships. / Strüwe, Wolfram; Zweifel, Peter.
In: Journal of Risk and Uncertainty, Vol. 12, No. 1, 01.01.1996, p. 65-76.Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Long-term care insurance and bequests as instruments for shaping intergenerational relationships
AU - Strüwe, Wolfram
AU - Zweifel, Peter
PY - 1996/1/1
Y1 - 1996/1/1
N2 - The growing demand for long-term care (LTC) causes the relationship between children and their parents to gain increased importance for society. Parents may create incentives for children to provide LTC through bequests, or they may purchase LTC insurance. While these instruments have been analyzed separately in the literature, this article shows that optimal LTC insurance must be small in the presence of bequests. Thus, the failure of private LTC insurance to diffuse into middle-class households may be explained by the fact that the bequest instrument is fully available to the current generation of parents, who for the first time since 1914 are in a position to bequeath an intact stock of capital in major industrialized countries.
AB - The growing demand for long-term care (LTC) causes the relationship between children and their parents to gain increased importance for society. Parents may create incentives for children to provide LTC through bequests, or they may purchase LTC insurance. While these instruments have been analyzed separately in the literature, this article shows that optimal LTC insurance must be small in the presence of bequests. Thus, the failure of private LTC insurance to diffuse into middle-class households may be explained by the fact that the bequest instrument is fully available to the current generation of parents, who for the first time since 1914 are in a position to bequeath an intact stock of capital in major industrialized countries.
KW - Economics
KW - long-term care
KW - insurance
KW - economics of the family
UR - http://www.scopus.com/inward/record.url?scp=21344461163&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/2a5821b6-d960-379f-944d-4232398a38de/
U2 - 10.1007/BF00353331
DO - 10.1007/BF00353331
M3 - Journal articles
AN - SCOPUS:21344461163
VL - 12
SP - 65
EP - 76
JO - Journal of Risk and Uncertainty
JF - Journal of Risk and Uncertainty
SN - 0895-5646
IS - 1
ER -