Full Citation

Title: The Impact of Medical and Nursing Home Expenses on Savings

Citation Type: Journal Article

Publication Year: 2014

ISBN:

ISSN:

DOI: 10.1257/mac.6.3.29

NSFID:

PMCID:

PMID:

Abstract: We consider a life-cycle model with idiosyncratic risk in earnings, out-of-pocket medical and nursing home expenses, and survival. Partial insurance is available through welfare, Medicaid, and social security. Calibrating the model to the United States we show that savings for old-age, out-of-pocket expenses account for 13.5 per- cent of aggregate wealth, half of which is due to nursing home expenses; cross-sectional out-of-pocket nursing home risk accounts for 3 percent of aggregate wealth and substantially slows down wealth decumulation at older ages; and all newborns would benefit if social insurance for nursing home stays was made more generous.

Url: https://www.aeaweb.org/articles?id=10.1257/mac.6.3.29

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Authors: Kopecky, Karen A.; Koreshkova, Tatyana

Periodical (Full): American Economic Journal: Macroeconomics

Issue: 3

Volume: 6

Pages: 29-72

Data Collections: IPUMS USA

Topics: Population Health and Health Systems

Countries: