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Public Procurement and Non-contractible Quality: Evidence from Elderly Care
Södertörn University, School of Social Sciences, Economics.ORCID iD: 0000-0001-5026-9479
Umeå universitet.
2012 (English)Report (Other academic)
Abstract [en]

Many quality dimensions are hard to contract upon and are at risk of degradation when the service is procured rather than produced in-house. On the other hand, procurement may foster performance-improving innovation. We assemble a large data set on elderly care services in Sweden for the 1990-2009 period, including survival rates, our measure of non-contractible quality, and indicators of subjectively perceived quality of service. We estimate the effects of municipalities’ decision to procure rather than produce in-house on non-contractible quality using a difference-in-difference approach and controlling for a number of other potential determinants. 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.

Place, publisher, year, edition, pages
Umeå: Umeå universitet , 2012. , 51 p.
, Umeå Economic Studies, ISSN 0348-1018 ; 846
Keyword [en]
incomplete contracts, privatization, procurement, quality, elderly care, mortality, outsourcing, nursing home, performance measurement
National Category
Research subject
Politics, Economy and the Organization of Society
URN: urn:nbn:se:sh:diva-27216OAI: diva2:809601
Available from: 2015-05-04 Created: 2015-05-04 Last updated: 2016-09-19Bibliographically approved

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Bergman, Mats
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