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
Elsevier, 2016. Vol. 49, 109-119 p.
competition, incomplete contracts, limited enforcement, mortality, quality, outsourcing, nursing homes, performance measurement, privatization, procurement, public services
Äldreomsorg, kvalitet, upphandling, privat vård, mortalitet, kontrakt, konkurrens, särskilt boende
Research subject Economics
IdentifiersURN: urn:nbn:se:umu:diva-123229DOI: 10.1016/j.jhealeco.2016.06.010OAI: oai:DiVA.org:umu-123229DiVA: diva2:944085
FunderSwedish Research CouncilSwedish Competition Authority