Needs, economic constraints, and the distribution of public home-care

Audun Langørgen

Applied Economics, 2004, vol. 36, issue 5, 485-496

Abstract: When private goods are publicly provided at subsidized prices, government authorities have to determine the distribution of services on recipients. The distribution of services according to need is frequently referred to as an important policy goal. Thus governments are assumed to develop standards for evaluating the relative needs of different clients. This paper analyses the impact of needs and economic constraints on the distribution of public home-care in Norway. The empirical results show that individual needs have a significant effect on the distribution of home-care. Another finding is that local public authorities with higher disposable incomes meet client needs better. Finally the results are utilized to derive a measure of client-specific need.

Date: 2004
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DOI: 10.1080/00036840410001682197

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