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

Quitterie Roquebert and Marianne Tenand ()
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Marianne Tenand: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres

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Abstract: Little is known about the price sensitivity of demand for home care of the disabled elderly. We partially ll this knowledge gap by using administrative data on the bene ficiaries of the main French home care subsidy program in a department and exploiting inter|individual 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 signi ficantly 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 co-payments in home care subsidy schemes.

Keywords: Long-term care; Price elasticity; Home care; censored regression; Disabled elderly; Dépendance personnes agées; Elasticité-prix; Aide à domicile; Régression censurée (search for similar items in EconPapers)
Date: 2017-08
Note: View the original document on HAL open archive server: https://hal.science/hal-01385678v2
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Citations: View citations in EconPapers (17)

Published in Health Economics, 2017, ⟨10.1002/hec.3531⟩

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Working Paper: Pay less, consume more? The price elasticity of home care of the disabled elderly in France (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-01385678

DOI: 10.1002/hec.3531

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