Chapter 2 Flashcards
Stakeholders and the social protection system
What can consumption be financed from?
Labour income
Transfers that may be from others or from the state, and which may be in the form of cash, or as goods and services received in kind
Asset-based reallocations, such as borrowing or spending accumulated savings
What is consumption smoothing?
Consumption smoothing is about ensuring adequate access to goods and services as needed, including the ability to withstand shocks
What are the two main tools that individuals can use to smooth their consumption?
Pooling their risks with others
- better if probability is small and correlation low
Saving
- better if probability is high or correlation is high
What are the 3 main reasons for saving?
Consumption smoothing
Precautionary saving
Bequest motives
What are the different levels of healthcare?
Primary care health professionals act as a first point of consultation for all patients. Typically in an out-patient setting. Primary care is typically comprehensive and includes preventative care and chronic disease management.
Secondary care refers to the heh professionals.for example, cardiologists, urologists, and dermatologists. It includes acute care and skilled attendance during childbirth, intensive care, and medical imaging services. Secondary care may be provided in or out of hospital. In some countries, patients may be required to see a primary care provider for a referral before they can access secondary care, while in others self-referral is possible.
Tertiary care is specialised consultative healthcare, usually on an in-patient basis and referral from a primary or secondary health professional, in a facility that has personnel and facilities for advanced medical investigation and treatment, such as a tertiary referral hospital or academic hospital.
Even more advanced specialist care may be available as quaternary care. Quaternary facilities deal with very rare cases and experimental treatments.
Primary healthcare is usually available at local commun.
What factors will influence retirement age?
The age at which the person first becomes eligible for state pension benefits
The retirement age set by the person’s employer, which may or may not correspond with the state retirement age
Personal factors, such as health and family circumstances
Financial circumstances, especially eligibility for state and company-provided pension benefits
Employer or industry-related factors, such as skills shortages
Physical requirements of the job
Labour market effects
Other country-specific
What is myopia?
the quality of being short-sighted
When people are faced with the choice to buy an inflation-linked or level annuity when they retire, many choose a level annuity that pays a higher benefit in the short run but a lower benefit in the long run than an inflation-linked annuity.
Give an example of Loss aversion or prospect theory?
One consequence of loss aversion is that people tend to invest conservatively to avoid short-term loss at the expense of expected long-term outperformance
What is Sunk cost fallacy?
People may be reluctant to cut their losses by changing jobs or switching out of a loss-making investment portfolio, preferring to wait until things get better
