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Estimating Price Elasticities of Convalescent Care Programmes

  • NicolasR. Ziebarth

This study is the first to estimate price elasticities of demand for convalescent care programmes. In 1997, the German legislature more than doubled the daily co-payments for the publicly insured from €6 to €13. The measure caused the overall demand for convalescent care treatments to fall by 20 to 25%. I estimate the price elasticity for medical rehabilitation programmes aimed at preventing work disability to be about - 0.3, whereas the elasticity for medical rehabilitation programmes for recovery from accidents at work lies around - 0.5. The demand for preventive treatment at health spas is elastic and less than - 1. Copyright © The Author(s). Journal compilation © Royal Economic Society 2010.

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 120 (2010)
Issue (Month): 545 (06)
Pages: 816-844

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Handle: RePEc:ecj:econjl:v:120:y:2010:i:545:p:816-844
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