Umeå Economic Studies, Department of Economics, Umeå University
No 702:
Where Should the Elderly Live and Who Should Pay for their Care? A Study in Demographics and Geographical Economic
Thomas Aronsson ()
, Sören Blomquist ()
and Luca Micheletto ()
Abstract: There is a rich literature analyzing the problems that
will arise as the share of elderly and retired in the population increases
in the near future. However, the locational decisions among the elderly as
well as their implications in terms of taxes/transfers and of allocation of
responsibilities for elderly care between the federal and local levels have
not received much attention. In this paper we aim at investigating these
issues. For this purpose we explore a model where there is a big city and a
set of small villages and where congestion effects and agglomeration forces
are at work at the level of the big city. We also assume that the
population is divided between two groups of agents, productive and retired,
which differ with respect to the degree of mobility. In the first part of
the paper we study and characterize the inefficiencies that arise because
of individuals' free location choice in the context of a unitary
government. In the second part of the paper we consider a fiscal federalism
structure and we investigate the suitable instruments that are needed in
order to decentralize the optimal allocation obtained under full
centralization.
Keywords: Agglomeration effects; congestion; elderly care; fiscal federalism; (follow links to similar papers)
JEL-Codes: D62; H42; H55; H77; J10; (follow links to similar papers)
23 pages, January 25, 2007
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
DownloadAsset.action?contentId=48605&languageId=3&assetKey=ues702 
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Kjell-Göran Holmberg ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joachim Ekebom
