Investigators from University of Applied Sciences Release New Data on Public Economic Theory (Estate Recovery and Long-term Care Insurance)

2020 MAR 12 (NewsRx) -- By a News Reporter-Staff News Editor at Politics, Law & Government Daily -- Investigators discuss new findings in Economics - Public Economic Theory. According to news reporting from Geneva, Switzerland, by NewsRx journalists, research stated, “Estate recovery is a policy under which the state recovers part of long-term care (LTC) subsidies from the estates of deceased beneficiaries. This paper studies the effect of estate recovery on LTC insurance demand.”

Financial support for this research came from Schweizerischer Nationalfonds zur Forderung der Wissenschaftlichen Forschung.

The news correspondents obtained a quote from the research from the University of Applied Sciences, “This effect strongly relies on the bequest motive since the main purpose behind purchasing LTC insurance is to protect bequests from the financial costs of LTC. We find that the impact of estate recovery on LTC insurance depends on the level of parental bequests and on whether and how the parent anticipates the child’s preferences with respect to informal care. More specifically, we show that estate recovery encourages the parent to purchase LTC insurance when his child is considered selfish or to like providing care. However, this policy could provide disincentives to LTC insurance purchase by the parent if his child is considered to dislike providing informal care. Our results also show that estate recovery reduces and may even eliminate public support crowding out of private LTC insurance demand.”

According to the news reporters, the research concluded: “Finally, we characterize the welfare implications of financing LTC public support by estate recovery.”

For more information on this research see: Estate Recovery and Long-term Care Insurance. Journal of Public Economic Theory, 2020;():. Journal of Public Economic Theory can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Journal of Public Economic Theory - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9779)

Our news journalists report that additional information may be obtained by contacting C. Courbage, University of Applied Sciences Western Switzerland Hes So, Geneva School Business Administration, Ch-1127 Geneva, Switzerland.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/jpet.12428. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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