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Revealed Standards for Distributing Public Home-Care on Clients

When private goods are publicly provided at subsidized prices, government authorities have to determine the distribution of services on recipients. Such distributions are commonly based on legal regulations and professional guidelines. Thus governments are assumed to develop service standards that are incorporated in the preferences for allocation of services. The purpose of this paper is to analyse the behavior of local governments when they are allocating home-care services on elderly and disabled clients. Based on Norwegian data it is demonstrated that service standards as well as economic constraints have an impact on the supply of home-care. As expected the supply to individual clients increases with the degree of disablement. The model estimates also show that service standards vary substantially between different client groups. For instance, service levels for mentally retarded are rather high compared to elderly clients in non-single households. Individual service standards are derived from observed behavior by means of model simulation, where the standards are defined for an average level of municipal incomes and prices. The results are used to evaluate the degree of mismatch between service supply and common service standards in different local communities.

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Paper provided by Statistics Norway, Research Department in its series Discussion Papers with number 288.

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Date of creation: Nov 2000
Date of revision:
Handle: RePEc:ssb:dispap:288
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  1. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 57-84, February.
  2. Boadway, Robin & Marchand, Maurice, 1995. "The Use of Public Expenditures for Redistributive Purposes," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 45-59, January.
  3. Nichols, Albert L & Zeckhauser, Richard J, 1982. "Targeting Transfers through Restrictions on Recipients," American Economic Review, American Economic Association, vol. 72(2), pages 372-77, May.
  4. Sinn, Hans-Werner, 1995. "A Theory of the Welfare State," CEPR Discussion Papers 1278, C.E.P.R. Discussion Papers.
  5. Borcherding, Thomas E & Deacon, Robert T, 1972. "The Demand for the Services of Non-Federal Governments," American Economic Review, American Economic Association, vol. 62(5), pages 891-901, December.
  6. Audun Langørgen & Rolf Aaberge, 1999. "A Structural Approach for Measuring Fiscal Disparities," Discussion Papers 254, Statistics Norway, Research Department.
  7. Behrman, Jere R & Craig, Steven G, 1987. "The Distribution of Public Services: An Exploration of Local Governmental Preferences," American Economic Review, American Economic Association, vol. 77(1), pages 37-49, March.
  8. Blomquist, Suren & Christiansen, Vidar, 1995. " Public Provision of Private Goods as a Redistributive Device in an Optimum Income Tax Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 547-67, December.
  9. Wagstaff, Adam & van Doorslaer, Eddy & Paci, Pierella, 1991. "On the measurement of horizontal inequity in the delivery of health care," Journal of Health Economics, Elsevier, vol. 10(2), pages 169-205, July.
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