The Impact of Medical and Nursing Home Expenses on Savings

• 成果类型: Article
• 署名作者: Kopecky, Karen A.; Koreshkova, Tatyana
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Atlanta; Concordia University - Canada; Universite de Montreal; Concordia University - Canada
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.6.3.29
• 发表日期: 2014
• 页码: 29-72
• 关键词: life-cycle; wealth inequality; insurance; RISK; consumption; Annuities; motives; models; MARKET

摘要

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 percent 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. (JEL D91, E21, E62, H51, I13, I18, I38, J14)\