Privatization and quality: Evidence from elderly care in Sweden
2016 (English)In: Journal of Health Economics, ISSN 0167-6296, E-ISSN 1879-1646, Vol. 49, 109-119 p.Article in journal (Refereed) Published
Non-contractible quality dimensions are at risk of degradation when the provision of public services is privatized. However, privatization may increase quality by fostering performance-improving innovation, particularly if combined with increased competition. We assemble a large data set on elderly care services in Sweden between 1990 and 2009 and estimate how opening to private provision affected mortality rates - an important and not easily contractible quality dimension - using a difference-in-difference in-difference approach. The results indicate that privatization and the associated increase in competition significantly improved non-contractible quality as measured by mortality rates.
Place, publisher, year, edition, pages
2016. Vol. 49, 109-119 p.
Competition, Incomplete contracts, Mortality, Outsourcing, Public procurement
Health Care Service and Management, Health Policy and Services and Health Economy Business Administration
IdentifiersURN: urn:nbn:se:uu:diva-307296DOI: 10.1016/j.jhealeco.2016.06.010ISI: 000384869400009PubMedID: 27394007OAI: oai:DiVA.org:uu-307296DiVA: diva2:1046030
FunderSwedish Research Council, 2008-22664-58604-33Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-2482