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In this paper we study how elderly individuals adjust their informal Long-term Care (LTC) utilization to changes in the provision of formal-care. Despite this is crucial to design effective policies of formal elderly-care, empirical evidence is scant due to the lack of credible identification strategies to account for the endogeneity of formal-care. We propose a novel instrument, an index that captures individuals’ eligibility status for the LTC programs implemented in the region of residence. Our estimates, which are robust to a number of different specifications, point to the existence of a substantial unmet demand of care among the elderly.
- instrumental variables
- unmet demand
- SHARE data
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Ludovico Carrino (Speaker)23 Jan 2019
Activity: Talk or presentation › Invited talkFile