Working Paper: NBER ID: w7504
Authors: Victor R. Fuchs
Abstract: The Medicare problem' is examined as part of the larger problem of providing for the overall financial needs of the elderly. Several myths about Medicare are discussed, and sources and uses of the elderly's full income' are estimated. The paper explores policy options to deal with technology-induced increases in health care expenditures and excessive dependence of the elderly on transfers from the young. The paper concludes that if Americans wish to continue to enjoy the benefits of medical advances, they will have to work more before and after age 65 and will have to increase substantially their rate of saving.
Keywords: No keywords provided
JEL Codes: I18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Demographic changes (J11) | Medicare expenditures (H51) |
| New medical technologies (O39) | Medicare expenditures (H51) |
| Means testing (H53) | Work and saving behavior of individuals under 65 (D14) |
| Service reduction (R48) | Expenditure control (H61) |
| Anticipation of high implicit tax rates from means testing (H31) | Saving behavior of younger Americans (D14) |