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Long-Term Care and Family Bargaining

Archived Abstract of Former PSC Researcher

Engers, M., and Steven N. Stern. 2002. "Long-Term Care and Family Bargaining." International Economic Review, 43(1): 73-114.

We present a structural model of how families decide who should care for elderly parents. We use data from the National Long-Term Care Survey to estimate and test the parameters of the model. Then we use the parameter estimates to simulate the effects of the existing long-term trends in terms of the common but untested explanations for them. Finally, we simulate the effects of alternative family bargaining rules on individual utility to measure the sensitivity of our results to the family decision-making assumptions we make.

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