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Are substitute services a barrier to controlling long-term care expenditures?

Author

Listed:
  • Mark Kattenberg

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Pieter Bakx

    (EUR)

Abstract

In many developed countries long-term care expenditures are a major source of concern, which has urged policy makers to cost reductions. However, long-term care financing is highly fragmented in most countries and hence reducing total costs is complicated: spending reductions in one type of care may have spillover effects elsewhere in the system. These spillovers may be substantial, as we show using a reform in the financing of one type of publicly financed home care in the Netherlands, domestic help. We show that this reform not only affected consumption of this care type, but also the consumption of three other types of long-term care that are financed through another public scheme.

Suggested Citation

  • Mark Kattenberg & Pieter Bakx, 2018. "Are substitute services a barrier to controlling long-term care expenditures?," CPB Discussion Paper 382, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:382
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Marianne Tenand & Pieter Bakx & Eddy van Doorslaer, 2020. "Equal long‐term care for equal needs with universal and comprehensive coverage? An assessment using Dutch administrative data," Health Economics, John Wiley & Sons, Ltd., vol. 29(4), pages 435-451, April.

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    More about this item

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • I10 - Health, Education, and Welfare - - Health - - - General

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