Ten years have passed since the Swedish government widely encouraged its municipalities to marketize their elderly care services. There has been a long-standing discussion on the benefit of marketization during that period, but most of the discussions were developed from the case studies of a limited number of municipalities. With lately available statistics, the present study tries to find some general rules across many different municipalities. Regarding the motives of the municipalities for marketization of elderly care, there is apparently a tendency that municipalities with more bourgeois politicians and a larger size of elderly population are likely to rely more on privately managed service. As for the effect of marketization, it is shown that the cost performance is better in those municipalities allowing the participation of private providers to certain extent than in others. Also, the cost performance seems to have an association with the political representation of municipalities, although somewhat modestly.
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Paper provided by The European Institute of Japanese Studies in its series EIJS Working Paper Series with number
137.
Length: 25 pages Date of creation: 01 Dec 2001 Date of revision: Handle: RePEc:hhs:eijswp:0137
Contact details of provider: Postal: The European Institute of Japanese Studies, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden Phone: +46-8-7369360 Fax: +46-8-313017 Email: Web page: http://www.hhs.se/eijs/ More information through EDIRC
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Find related papers by JEL classification: I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out
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