Market concentration, supply, quality and prices paid by local authorities in the English care home market

Ferran Espuny Pujol, Ruth Hancock, Morten Hviid, Marcello Morciano and Stephen Pudney

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We investigate the impact of exogenous local conditions which favor high market concentration on supply, price and quality in local markets for care homes for older people in England. We extend the existing literature in: (i) considering supply capacity as a market outcome alongside price and quality; (ii) taking account of the chain structure of care home supply and differences between the nursing home and residential care home sectors; (iii) using an econometric approach based on reduced form relationships that treats market concentration as a jointly determined outcome of a complex market. We find that areas susceptible to a high degree of market concentration tend to have greatly restricted supply of care home places and (to a lesser extent) a higher average public cost, than areas susceptible to low degree of market concentration. There is no significant evidence that conditions favoring high market concentration affect average care home quality.

Keywords: care homes; market concentration; price; quality; supply (search for similar items in EconPapers)
JEL-codes: L81 N0 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2021-08-01
New Economics Papers: this item is included in nep-age, nep-com, nep-eur, nep-hea, nep-reg and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Health Economics (United Kingdom), 1, August, 2021, 30(8), pp. 1886 - 1909. ISSN: 1057-9230

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Related works:
Journal Article: Market concentration, supply, quality and prices paid by local authorities in the English care home market (2021)
Working Paper: Market concentration, supply, quality and prices paid by local authorities in the English care home market (2019)
Working Paper: Market concentration, supply, quality and prices paid by Local Authorities in the English care home market (2019)
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