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Privatization and quality: Evidence from elderly care in Sweden
Sodertorn Univ, Stockholm, Sweden..
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation.
Umea Univ, Umea Sch Business & Econ, Dept Econ, S-90187 Umea, Sweden..
Univ Roma Tor Vergata, Ctr Econ Policy Res, EIEF, Stockholm Sch Econ SITE, Rome, Italy..
2016 (English)In: Journal of Health Economics, ISSN 0167-6296, E-ISSN 1879-1646, Vol. 49, 109-119 p.Article in journal (Refereed) Published
Abstract [en]

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.
Keyword [en]
Competition, Incomplete contracts, Mortality, Outsourcing, Public procurement
National Category
Health Care Service and Management, Health Policy and Services and Health Economy Business Administration
URN: urn:nbn:se:uu:diva-307296DOI: 10.1016/j.jhealeco.2016.06.010ISI: 000384869400009PubMedID: 27394007OAI: diva2:1046030
Swedish Research Council, 2008-22664-58604-33Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-2482
Available from: 2016-11-11 Created: 2016-11-11 Last updated: 2016-11-11Bibliographically approved

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