IDEAS home Printed from https://ideas.repec.org/p/her/chewps/2006-12.html
   My bibliography  Save this paper

Moral hazard and cash benefits in long-term home care, CHERE Working Paper 2006/12

Author

Listed:
  • Bernard van den Berg

    () (Vrije University Amsterdam)

  • Wolter Hassink

Abstract

This paper tests empirically for moral hazard in a system based on demand-side subsidies. In the Netherlands, demand-side subsidies were introduced in 1996. Clients receive a cash benefit to purchase the type of home care (housework, personal care, support with mobility, organisational tasks or social support) they need from the care supplier of their choice (private care provider, regular care agency, commercial care agency or paid informal care provider). Furthermore, they negotiate with the care supplier about price and quantity. Our main findings are the following. 1) The component of the cash benefit a client has no residual claimant on, has a positive impact on the price of care. 2) In contrast, the components of the cash benefit a client has residual claimant on, have no or a negative impact on the price of care. Both results point at the existence of moral hazard in a system of demand-side subsidies.

Suggested Citation

  • Bernard van den Berg & Wolter Hassink, 2006. "Moral hazard and cash benefits in long-term home care, CHERE Working Paper 2006/12," Working Papers 2006/12, CHERE, University of Technology, Sydney.
  • Handle: RePEc:her:chewps:2006/12
    as

    Download full text from publisher

    File URL: http://www.chere.uts.edu.au/pdf/wp2006_12.pdf
    File Function: First version, November 2006
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bernard van den Berg & Han Bleichrodt & Louis Eeckhoudt, 2005. "The economic value of informal care: a study of informal caregivers' and patients' willingness to pay and willingness to accept for informal care," Health Economics, John Wiley & Sons, Ltd., vol. 14(4), pages 363-376, April.
    2. Barbara Baarsma, 2003. "The Valuation of the IJmeer Nature Reserve using Conjoint Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(3), pages 343-356, July.
    3. McKnight, Robin, 2006. "Home care reimbursement, long-term care utilization, and health outcomes," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 293-323, January.
    4. Joseph E. Stiglitz, 2000. "The Contributions of the Economics of Information to Twentieth Century Economics," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1441-1478.
    5. Zweifel, Peter & Manning, Willard G., 2000. "Moral hazard and consumer incentives in health care," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.),Handbook of Health Economics, edition 1, volume 1, chapter 8, pages 409-459, Elsevier.
    6. repec:mpr:mprres:4666 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Long-term care; cash benefits; consumer directed services; demand-side subsidies; direct payments; moral hazard;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:her:chewps:2006/12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Liz Chinchen). General contact details of provider: http://edirc.repec.org/data/chusyau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.