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A micro-econometric analysis of care for the dependent elderly living at home in France: Is there a crowding-out effect of informal caregivers when an elderly dependent receives professional home care ?

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  • Arnaulty, Louis
  • Goltzy, Andreas
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    Abstract

    This paper focuses on the trade-off between formal care and informal care for disabled elderly people living at home in France. Using data from the French\ Handicap Santé Ménages " survey (2008), we try to answer the question of the effect of an increase in formal home care hours on the participation of informal caregivers. We extend previous literature, which almost exclusively focuses on the e ect of informal care on formal home care. We first estimate a two-part instrumental variable model, to account for endogeneity of formal home care. Then we estimate a bivariate Tobit model in order to take into account the censor of our formal home care variable. Our results confirm that there is a crowding-out effect of informal caregivers, when the elderly dependent person receives more hours of formal home care. Nevertheless, the crowding-out effect of informal caregivers is much lower, when only medical formal home care increases.

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    File URL: http://basepub.dauphine.fr/xmlui/bitstream/123456789/10723/1/A%20micro-econometric%20analysis%20of%20care%20for%20the%20dependent%20elderly%20living%20at%20home%20in%20France.pdf
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    Bibliographic Info

    Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/10723.

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    Date of creation: Dec 2012
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    Handle: RePEc:dau:papers:123456789/10723

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    Related research

    Keywords: Long-term Care; Informal Care; Formal Care; Two-Part Model; Instrumental Variable;

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    1. Charles, Kerwin Kofi & Sevak, Purvi, 2005. "Can family caregiving substitute for nursing home care?," Journal of Health Economics, Elsevier, vol. 24(6), pages 1174-1190, November.
    2. K. Bolin & B. Lindgren & P. Lundborg, 2008. "Informal and formal care among single-living elderly in Europe," Health Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 393-409.
    3. Viitanen, Tarja, 2007. "Informal and Formal Care in Europe," IZA Discussion Papers 2648, Institute for the Study of Labor (IZA).
    4. Van Houtven, Courtney Harold & Norton, Edward C., 2004. "Informal care and health care use of older adults," Journal of Health Economics, Elsevier, vol. 23(6), pages 1159-1180, November.
    5. Duan, Naihua, et al, 1983. "A Comparison of Alternative Models for the Demand for Medical Care," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(2), pages 115-26, April.
    6. Delattre, Eric & Samson, Anne-Laure, 2013. "Stratégies de localisation des médecins généralistes français : mécanismes économiques ou hédonistes ?," Economics Papers from University Paris Dauphine 123456789/11295, Paris Dauphine University.
    7. Eric Bonsang, 2008. "Does Informal Care from Children to their Elderly Parents Substitute for Formal Care in Europe?," CREPP Working Papers 0801, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
    8. Peter C. Coyte & Mark Stabile, 2001. "Household Responses to Public Home Care Programs," NBER Working Papers 8523, National Bureau of Economic Research, Inc.
    9. Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
    10. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
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