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A Country for Old Men? An Analysis of the Determinants of Long-Term Home Care in Europe

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  • S. Balia
  • Rinaldo Brau

Abstract

This paper investigates long-term home care utilisation in Europe. Data from SHARE on formal (nursing care or paid domestic help) and informal care (support provided by relatives) are used to study the probability and the quantity of both types of care being received. The overall process is framed in a fully simultaneous equation system which takes the form of a bivariate two-part model. Endogeneity and unobservable heterogeneity are addressed using a common latent factors approach. Age, disability and proximity-to-death are found to be important joint predictors of home care utilisation. The relationship between formal and informal care is small in absolute size and moves from substitutability to complementarity depending on the type of formal care considered.

Suggested Citation

  • S. Balia & Rinaldo Brau, 2011. "A Country for Old Men? An Analysis of the Determinants of Long-Term Home Care in Europe," Working Paper CRENoS 201104, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:201104
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    References listed on IDEAS

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    1. Young Kyung Do & Edward C. Norton & Sally C. Stearns & Courtney Harold Van Houtven, 2015. "Informal Care and Caregiver's Health," Health Economics, John Wiley & Sons, Ltd., vol. 24(2), pages 224-237, February.
    2. Matteo Lippi Bruni & Cristina Ugolini, 2006. "Assistenza a domicilio e assistenza residenziale: politiche di intervento e analisi empirica," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 241-268.
    3. Matteo Lippi Bruni & Cristina Ugolini, 2006. "A Note on the Choice between Formal and Informal Care for Elderly People," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(V), pages 85-90.
    4. de Meijer, Claudine & Koopmanschap, Marc & d' Uva, Teresa Bago & van Doorslaer, Eddy, 2011. "Determinants of long-term care spending: Age, time to death or disability?," Journal of Health Economics, Elsevier, vol. 30(2), pages 425-438, March.
    5. Van Houtven, Courtney Harold & Norton, Edward C., 2008. "Informal care and Medicare expenditures: Testing for heterogeneous treatment effects," Journal of Health Economics, Elsevier, vol. 27(1), pages 134-156, January.
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    Cited by:

    1. repec:zbw:rwirep:0525 is not listed on IDEAS
    2. Matteo Lippi Bruni & Cristina Ugolini, 2016. "Delegating home care for the elderly to external caregivers? An empirical study on Italian data," Review of Economics of the Household, Springer, vol. 14(1), pages 155-183, March.
    3. 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.
    4. 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.
    5. 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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    More about this item

    Keywords

    proximity to death; long-term care; discrete latent factors; ageing;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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