6533b861fe1ef96bd12c4405

RESEARCH PRODUCT

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

Theis Theisen

subject

Economics and EconometricsAlmost ideal demand systemVDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212030503 health policy & servicesUnit (housing)Peer review03 medical and health sciencesLong-term care0302 clinical medicineVDP::Medisinske Fag: 700::Helsefag: 800Nursing030212 general & internal medicineBusinessLiterature study0305 other medical scienceNursing homesGeneral Economics Econometrics and Finance

description

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.

https://doi.org/10.1007/s11294-020-09806-z