The Resource How to finance the rising costs of long-term care : four alternatives for the Netherlands

How to finance the rising costs of long-term care : four alternatives for the Netherlands

Label
How to finance the rising costs of long-term care : four alternatives for the Netherlands
Title
How to finance the rising costs of long-term care : four alternatives for the Netherlands
Creator
Subject
Language
eng
Summary
Long-term care expenditures in the Netherlands have risen substantially over the last 40 years. Only a part of this growth can be attributed to the ageing of the population. Rising long-term care costs threaten the sustainability of Dutch public finances: additional public revenues are needed to cover the additional spending. In this paper, the authors evaluate four alternative policies to finance the anticipated additional growth in long-term care above the rate implied by projected demographic growth. They analyse these financing alternatives using a macro model, focusing on the long-term effects on economic growth and on the redistribution of costs and benefits between birth cohorts. They find a relatively large intergenerational redistribution of lifetime net benefits for a pay-as-you-go system and for an immediate one-time increase of the premium rate, while a cohort-specific savings system or a pensioner tax both have relatively small intergenerational effects. Labour supply and private consumption decline in all four financing alternatives, although the size and timing of these effects differ
Citation source
In: Fiscal studies. - London. - Vol. 38 (2017), no. 3 ; p. 369-391
http://library.link/vocab/creatorName
  • Wouterse, B
  • Smid, B
Geographic coverage
  • European Union
  • Europe
Language note
English
http://library.link/vocab/subjectName
  • public finance
  • PAYG
  • health insurance
  • savings
  • pension fund
  • redistribution principle
Label
How to finance the rising costs of long-term care : four alternatives for the Netherlands
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Publication
Label
How to finance the rising costs of long-term care : four alternatives for the Netherlands
Publication

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