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Pré-Publication, Document De Travail Année : 2011

Long-Term Care, Altruism and Socialization

Résumé

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.
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Dates et versions

halshs-00622385 , version 1 (12-09-2011)

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  • HAL Id : halshs-00622385 , version 1

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Grégory Ponthière. Long-Term Care, Altruism and Socialization. 2011. ⟨halshs-00622385⟩
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