Mardi 31 janvier 2023

Le 31 janvier 2023

Le prochain séminaire du GAINS a lieu le 31 janvier de 10h30 à 12h00 à distance (sur Zoom).

Bertrand ACHOU (University of Groningen) présentera un papier intitulé At home versus in a nursing home: long-term care choices and marginal utility.

Abstract : Marginal utility when needing long-term care, and the related incentives for precautionary savings and insurance, may vary significantly whether one receives care at home or in a nursing home. In this paper, we construct strategic survey questions to estimate those differences. All else equal, we find that the marginal utility of financial resources is significantly higher when receiving care at home rather than in a nursing home. We then use these estimates within a quantitative life cycle model to evaluate the impact of the expected choice of care setting (home versus nursing home) on precautionary savings and insurance valuation. The marginal utility differences that we estimate imply a significant increase in the incentives to save and insure when expecting to receive care at home. However, a preference shift towards home care relative to nursing home care (for instance, because of an increased aversion to nursing homes) does not necessarily raise savings and insurance valuation as its impact not only depends on preferences but also on the design of public long-term care subsidies and how they differ by care setting.