Privatization and social welfare in the nursing home in Sweden

Elvio Accinelli and Osvaldo Salas
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Osvaldo Salas: University of Gothenburg

Contaduría y Administración, 2015, vol. 60, issue 4, 707–722

Abstract: Since the early nineties in Swedish starts a welfare state transformation process that allows the participation of private operators in sectors emblematic of the welfare state, such as education, health, child care and assistance to adults. To date, experience shows that the coexistence of private and public agent founded by the State, has not been free of obstacles. This article analyzes the problems arising on a regulated market, in which the regulator seeks to maximize social welfare, when a private operator, maximizing profits enter. We show that the participation of private operators in these markets, not necessarily leading to an improvement in social welfare, or an increase in the efficiency of the service. Achieving these goals means that the state is able to design efficient control mechanisms, which certainly has an associated cost.

Keywords: Privatization; Social welfare; State monopoly (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:nax:conyad:v:60:y:2015:i:4:p:707-722

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