Municipalities’ Decision to Care: At Home or in a Nursing Home-Reference-Cited by-同舟云学术

Municipalities’ Decision to Care: At Home or in a Nursing Home

Published:2020-10-29 Issue:4 Volume:26 Page:327-342
ISSN:1083-0898
Container-title:International Advances in Economic Research
language:en
Short-container-title:Int Adv Econ Res

Author:

Theisen Theis^ORCID

Abstract

AbstractAn almost ideal demand system for long-term care is estimated using data from Norway, where the split of long-term care between home care and care in nursing homes is determined by municipalities. Previous literature has barely addressed what determines municipalities’ or other organizations’ allocations of resources to the sub-sectors of long-term care. The results show that home care is a luxury, while nursing home care is a necessity with respect to total expenditures on long-term care. Municipalities respond to high unit costs for home care by reducing that type of care. Municipalities are highly responsive to variations in the need for the two types of care and seem to provide a well-functioning insurance mechanism for long-term care. In the previous empirical literature, municipalities’ role as providers of insurance against the consequences of disabilities and frailty has received scant attention.

Funder

University of Agder

Publisher

Springer Science and Business Media LLC

Subject

General Economics, Econometrics and Finance,Economics and Econometrics

Link

http://link.springer.com/content/pdf/10.1007/s11294-020-09806-z.pdf

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