Privatization and Quality: Evidence from Elderly Care in Sweden
Mats A. Bergman () and
Sofia Lundberg ()
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Mats A. Bergman: Södertörn University
No 19, SITE Working Paper Series from Stockholm School of Economics, Stockholm Institute of Transition Economics
Many quality dimensions are hard to contract upon and are at risk of degradation when services are procured rather than produced in-house. However, procurement may foster performance-improving innovation. We assemble a large data set on elderly care services in Sweden between 1990 and 2009, including survival rates - our measure of non-contractible quality - and subjectively perceived quality of service. We estimate how procurement from private providers affects these measures using a difference-in-difference approach. The results indicate that procurement significantly increases non-contractible quality as measured by survival rate, reduces the cost per resident but does not affect subjectively perceived quality.
Keywords: elderly care; incomplete contracts; limited enforcement; mortality; non-contractible quality; outsourcing; nursing homes; performance measurement; perceived quality; privatization; procurement. (search for similar items in EconPapers)
JEL-codes: H57 I18 L33 (search for similar items in EconPapers)
Pages: 52 pages
New Economics Papers: this item is included in nep-age, nep-dem, nep-eur and nep-hea
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Journal Article: Privatization and quality: Evidence from elderly care in Sweden (2016)
Working Paper: Privatization and Quality: Evidence from Elderly Care in Sweden (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:hasite:0019
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