Nursing Homes in Equilibrium: Implications for Long-term Care Policies

Tatyana Koreshkova () and Minjoon Lee
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Tatyana Koreshkova: Concordia University and CIREQ, https://drtatyana.github.io/

No 21001, Working Papers from Concordia University, Department of Economics

Abstract: We build an equilibrium model of a nursing home market with decision-makers on both sides of the market. On the demand side, heterogeneous households with stochastic needs for long-term care solve dynamic optimization problems, choosing between in-home and nursing-home care. On the supply side, locally competitive nursing homes decide prices and intensities of care given the household demand. The government subsidizes long-term care of the poorest. The quantitative model successfully generates key empirical patterns. Evaluation of long-term care policies shows that the equilibrium approach is important for the welfare and distributional effects of policies targeting either side of the market.

Keywords: Long-term Care; Nursing Home; Medicaid. (search for similar items in EconPapers)
JEL-codes: D15 E21 I11 I13 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2021-01
New Economics Papers: this item is included in nep-dge, nep-hea, nep-ias and nep-mac
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https://drtatyana.github.io/NHs_in_equilibrium_2021Jan22.pdf (application/pdf)

Related works:
Working Paper: Nursing Homes in Equilibrium: Implications for Long-term Care Policies (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:crd:wpaper:21001

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