Is public long-term care insurance necessary?

This article examines the need for public long-term care (LTC) insurance wi thin an overlapping generations model. The discussion revolves around two i tems: financing methods and inefficiency of privately provided LTC insuranc e. Special attention is paid to the inefficiency caused by the individual b ehavior regarding health investment under a privately provided LTC insuranc e system. The authors' analysis shows that this inefficiency is improved by introducing public LTC insurance.