We study the role of social long-term care (LTC) insurance when income taxation and private insurance markets are imperfect. Policy instruments include public provision of LTC as well as a subsidy on private insurance. The subsidy scheme may be linear or nonlinear. For the linear part we...

In Europe there are countries whose welfare system is more in the tradition of Beveridge (based on universal flat benefits) and others whose system is mainly Bismarkian (based on benefits related to past contributions).Labor mobility across different countries raises concerns about the...