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The Impact of Financial Incentives on the Composition of Long‐term Care in Norway
Author(s) -
Øien Henning,
Karlsson Martin,
Iversen Tor
Publication year - 2012
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/pps021
Subject(s) - norwegian , long term care , business , revenue , incentive , service (business) , government (linguistics) , economic rent , nursing homes , composition (language) , panel data , demographic economics , finance , public economics , economics , nursing , medicine , marketing , philosophy , linguistics , econometrics , microeconomics
In Norway, municipalities have economic incentives for choosing residential care in nursing homes for high‐income clients and home‐based care for low‐income clients. Using a three‐year panel, 2007‐2009, on 427 municipalities we provide an analysis of the effect of the Norwegian long‐term care (LTC) financing system on the composition of LTC services at the municipality level. Our main result is that the composition of service is determined by local government revenue and local need for LTC services. We cannot identify an effect of average income among older people in a municipality regarding the balance between home‐based care and nursing home care. Hence, the results do not provide evidence of a service distortion.