Download or read book How to Finance the Rising Costs of Long-term Care : Four Alternatives for the Netherlands written by B. Wouterse and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Long-term care expenditures in the Netherlands have risen substantially over the last 40 years. Only a part of this growth can be attributed to the ageing of the population. Rising long-term care costs threaten the sustainability of Dutch public finances: additional public revenues are needed to cover the additional spending. In this paper, the authors evaluate four alternative policies to finance the anticipated additional growth in long-term care above the rate implied by projected demographic growth. They analyse these financing alternatives using a macro model, focusing on the long-term effects on economic growth and on the redistribution of costs and benefits between birth cohorts. They find a relatively large intergenerational redistribution of lifetime net benefits for a pay-as-you-go system and for an immediate one-time increase of the premium rate, while a cohort-specific savings system or a pensioner tax both have relatively small intergenerational effects. Labour supply and private consumption decline in all four financing alternatives, although the size and timing of these effects differ.