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Care Use by the Disabled: Are Professional and Informal Care Substitutes?

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  • Anais Cheneau
  • Véronique Simonnet

Abstract

We here assume that the decisions to use formal and/or informal care are made jointly, so that the choice to use one is a function of the utility associated with the other. Applying asymptotic least-squares methods to data from the 2008 French Disability-Healthcare survey, we uncover a two-way (negative) causal relationship between the two types of care. Those most likely to use informal care forego some professional care, and those who benefit from professional care rely less on help from their relatives. This substitution between informal and formal care is partly explained by the restricted access to professional care of the most economically-vulnerable, people under 60 and those living in a couple, for whom the support of relatives helps compensate for the lack of formal care.

Suggested Citation

  • Anais Cheneau & Véronique Simonnet, 2022. "Care Use by the Disabled: Are Professional and Informal Care Substitutes?," Annals of Economics and Statistics, GENES, issue 148, pages 109-140.
  • Handle: RePEc:adr:anecst:y:2022:i:148:p:109-140
    DOI: https://doi.org/10.2307/48706311
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    More about this item

    Keywords

    Health Economics; Formal Care; Informal Care; Asymptotic Least Squares;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation

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