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Crowding out Informal Care? Evidence from a Social Experiment in Germany

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  • Arntz, Melanie
  • Thomsen, Stephan L.

Abstract

This paper evaluates the effects of a professionally assisted consumer-directed program (Personal Budgets) compared to the standard home care programs of the German long-term care insurance. The evaluation makes use of a long-run social experiment at seven different sites with a random assignment into a treatment group receiving personal budgets and a control group in standard home care programs, i.e. an in-kind benefit (agency care) and cash payments. Compared to agency care personal budgets yield better care outcomes with regard to the overall support of formal and informal caregivers. In contrast, personal budgets do not improve care outcomes compared to the much less generous cash payments due to a strong crowding out of informal by formal care.

Suggested Citation

  • Arntz, Melanie & Thomsen, Stephan L., 2008. "Crowding out Informal Care? Evidence from a Social Experiment in Germany," ZEW Discussion Papers 08-113, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:7503
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    References listed on IDEAS

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    Cited by:

    1. Melanie Arntz & Stephan L. Thomsen, 2010. "The Social Long-term Care Insurance: A Frail Pillar of the German Social Insurance System," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(2), pages 29-34, 07.
    2. Arntz Melanie & Thomsen Stephan L., 2010. "Are Personal Budgets a Financially Sound Reform Option for the German Long-Term Care Insurance?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(4), pages 378-402, August.
    3. Keck, Wolfgang, 2011. "Pflege und Beruf: Ungleiche Chancen der Vereinbarkeit," WZBrief Arbeit 09, WZB Berlin Social Science Center.
    4. Arntz, Melanie & Thomsen, Stephan L., 2008. "Reforming Home Care Provision in Germany: Evidence from a Social Experiment," ZEW Discussion Papers 08-114, ZEW - Leibniz Centre for European Economic Research.
    5. repec:ces:ifodic:v:8:y:2010:i:2:p:14566976 is not listed on IDEAS

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    More about this item

    Keywords

    consumer-directed long-term care; social experiment; personal budget; evaluation; Germany;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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