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The Impact of Financial Incentives on the Composition of Long-term Care in Norway

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Author Info

  • Henning Oien
  • Martin Karlsson
  • Tor Iversen

Abstract

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. Copyright 2012, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/aepp/pps021
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal Applied Economic Perspectives and Policy.

Volume (Year): 34 (2012)
Issue (Month): 2 ()
Pages: 258-274

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Handle: RePEc:oup:apecpp:v:34:y:2012:i:2:p:258-274

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