Pay less, consume more? The price elasticity of home care for the disabled elderly in France

Quitterie Roquebert and Marianne Tenand

Health Economics, 2017, vol. 26, issue 9, 1162-1174

Abstract: Little is known about the price sensitivity of demand for home care of the disabled elderly. We partially fill this knowledge gap by using administrative data on the beneficiaries of the main French home care subsidy program in a department and exploiting interindividual variation in provider prices. We address the potential endogeneity of prices by taking advantage of the unequal spatial coverage of providers and instrumenting price by the number of municipalities served by a provider. We estimate a price elasticity of around −0.4 that is significantly different from both 0 and −1. This less than proportionate response of consumption to price has implications for the efficiency and redistributive impact of variation in the level of copayments in home care subsidy schemes.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
https://doi.org/10.1002/hec.3531

Related works:
Working Paper: Pay less, consume more? The price elasticity of home care of the disabled elderly in France (2017)
Working Paper: Pay less, consume more? The price elasticity of home care of the disabled elderly in France (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:hlthec:v:26:y:2017:i:9:p:1162-1174

Access Statistics for this article

Health Economics is currently edited by Alan Maynard, John Hutton and Andrew Jones

More articles in Health Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().