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Privatization and Quality: Evidence from Elderly Care in Sweden
Södertörns Högskola.
Uppsala University.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0001-6094-9099
Stockholm School of Economics.
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
Elsevier, 2016. Vol. 49, 109-119 p.
Keyword [en]
competition, incomplete contracts, limited enforcement, mortality, quality, outsourcing, nursing homes, performance measurement, privatization, procurement, public services
Keyword [sv]
Äldreomsorg, kvalitet, upphandling, privat vård, mortalitet, kontrakt, konkurrens, särskilt boende
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Research subject
URN: urn:nbn:se:umu:diva-123229DOI: 10.1016/j.jhealeco.2016.06.010OAI: diva2:944085
Swedish Research CouncilSwedish Competition Authority
Available from: 2016-06-28 Created: 2016-06-28 Last updated: 2016-07-08Bibliographically approved

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Lundberg, Sofia
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