Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70627
Authors: 
Kopecky, Karen A.
Koreshkova, Tatyana
Year of Publication: 
2010
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 2010-19
Abstract: 
We consider a life-cycle model with idiosyncratic risk in labor 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 find that 12 percent of aggregate savings is accumulated to finance and self-insure against old-age health expenses given the absence of complete public health care for the elderly and that nursing home expenses play an important role in the savings of the wealthy and on aggregate. Moreover, we find that the aggregate and distributional effects of public health care provision are highly dependent on the availability of other programs making up the social insurance system.
Subjects: 
out-of-pocket medical expenses
nursing home costs
means-tested social insurance
life-cycle savings
wealth inequality
social security
JEL: 
E21
H31
H53
I18
I38
Document Type: 
Working Paper

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