Public Procurement and Non-contractible Quality: Evidence from Elderly Care
2012 (English)Report (Other academic)
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
incomplete contracts, privatization, procurement, quality, elderly care, mortality, outsourcing, nursing home, performance measurement
Research subject Politics, Economy and the Organization of Society
IdentifiersURN: urn:nbn:se:sh:diva-27216OAI: oai:DiVA.org:sh-27216DiVA: diva2:809601