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The Demand for Nursing Home Care: An Analysis of the Substitution Between Institutional and Noninstitutional Care

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Barry R. Chiswick

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Abstract

This paper analyzes the demand for nursing home care for the aged. The cross-sectional analysis indicates a high price elasticity of demand (-2.2), and that the demand is greater the less capable are the aged of providing own care, the better the job opportunities of adult women, and the wealthier the SMSA. Utilization increased 67percentfrom 1963 to 1973,but 64 percentage points is attributable to changes in these demand shift variables. This casts doubt on the view that the growth in utilization was largely stimulated by changing public policies during the period.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0098.

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Date of creation: Jul 1975
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Handle: RePEc:nbr:nberwo:0098

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  1. Kenneth A. Couch & Alice Zawacki, 2001. "The Utilization of Different Modes of Residence and Health Services by the Elderly," Working Papers 01-14, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  2. Alan M. Garber, 1995. "To Comfort Always: The Prospects of Expanded Social Responsibility for Long-Term Care," NBER Working Papers 5034, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Haruko Noguchi & Satoshi Shimizutani, 2005. "The Determinants of Exit from Nursing Homes and the Price Elasticity of Nursing Home Care: Evidence from Japanese Micro-level Data," Hi-Stat Discussion Paper Series d04-67, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
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