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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

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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Suggested Citation

  • Barry R. Chiswick, 1976. "The Demand for Nursing Home Care: An Analysis of the Substitution between Institutional and Noninstitutional Care," Journal of Human Resources, University of Wisconsin Press, vol. 11(3), pages 295-316.
  • Handle: RePEc:uwp:jhriss:v:11:y:1976:i:3:p:295-316
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    Cited by:

    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.
    2. repec:zbw:rwirep:0525 is not listed on IDEAS
    3. 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.
    4. Alan M. Garber, 1994. "Financing Health Care for Elderly Americans in the 1990s," NBER Chapters, in: Aging in the United States and Japan: Economic Trends, pages 175-194, National Bureau of Economic Research, Inc.
    5. SHIMIZUTANI Satoshi & NOGUCHI Haruko, 2002. "The Determinants of Nursing Home Exit and the Price Elasticity of Institutional Care: Evidence from Micro-level Data," ESRI Discussion paper series 024, Economic and Social Research Institute (ESRI).
    6. Shinya Sugawara, 2022. "What composes desirable formal at-home elder care? An analysis for multiple service combinations," The Japanese Economic Review, Springer, vol. 73(2), pages 373-402, April.
    7. Evelyn Lehrer & Seiichi Kawasaki, 1985. "Child care arrangements and fertility: An analysis of two-earner households," Demography, Springer;Population Association of America (PAA), vol. 22(4), pages 499-513, November.
    8. Adam Pilny & Magdalena A. Stroka, 2016. "Determinants of received long-term care – Individual responses to regional nursing home provisions," Health Care Management Science, Springer, vol. 19(4), pages 326-337, December.
    9. Elena Stancanelli, 2015. "Institutional long-term care and government regulation," IZA World of Labor, Institute of Labor Economics (IZA), pages 179-179, August.
    10. Dana Mukamel & William Spector, 2002. "The competitive nature of the nursing home industry: price mark ups and demand elasticities," Applied Economics, Taylor & Francis Journals, vol. 34(4), pages 413-420.
    11. Noguchi, Haruko & Shimizutani, Satoshi, 2011. "The determinants of exit from institutions and the price elasticity of institutional care: Evidence from Japanese micro-level data," Journal of the Japanese and International Economies, Elsevier, vol. 25(2), pages 131-142, June.
    12. Pilny, Adam & Stroka, Magdalena A., 2014. "Choice of Received Long-term Care – Individual Responses to Regional Nursing Home Provisions," Ruhr Economic Papers 525, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Adam Pilny & Magdalena A. Stroka, 2014. "Choice of Received Long-term Care – Individual Responses to Regional Nursing Home Provisions," Ruhr Economic Papers 0525, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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