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Household Responses to Public Home Care Programs

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  • Peter C. Coyte
  • Mark Stabile

Abstract

A choice-theoretic model of household decision-making with respect to care-giving time allocations and the use of publicly and privately financed home care services is proposed. Predictions concerning the effect of increased availability of publicly financed home care services on home care utilization, informal care-giving, and health status are derived. These predictions are assessed through use of Canadian inter-provincial survey data on home care use and care-giving that are matched with data on home care funding for the period 1992 to 1998. Increased availability of publicly financed home care is associated with an increase in its utilization and a decline in informal care-giving, with this effect more pronounced among lower income Canadians. While self-reported health status was positively correlated with the increased availability of publicly financed home care, the perceived need for home care was invariant to this change.

Suggested Citation

  • Peter C. Coyte & Mark Stabile, 2001. "Household Responses to Public Home Care Programs," NBER Working Papers 8523, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:8523
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    References listed on IDEAS

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    1. Hoerger, Thomas J & Picone, Gabriel A & Sloan, Frank A, 1996. "Public Subsidies, Private Provision of Care and Living Arrangements of the Elderly," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 428-440, August.
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    3. Liliana E. Pezzin & Peter Kemper & James Reschovsky, 1996. "Does Publicly Provided Home Care Substitute for Family Care? Experimental Evidence with Endogenous Living Arrangements," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 650-676.
    4. Ettner, Susan L, 1994. "The Effect of the Medicaid Home Care Benefit on Long-Term Care Choices of the Elderly," Economic Inquiry, Western Economic Association International, vol. 32(1), pages 103-127, January.
    5. David M. Cutler & Louise Sheiner, 1994. "Policy Options for Long-Term Care," NBER Chapters, in: Studies in the Economics of Aging, pages 395-442, National Bureau of Economic Research, Inc.
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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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