Privatization and quality: Evidence from elderly care in Sweden
2016 (English)In: Journal of Health Economics, ISSN 0167-6296, E-ISSN 1879-1646, Vol. 49, 109-119 p.Article in journal (Refereed) PublishedText
Non-contractible quality dimensions are at risk of degradation when the provision of public services is privatized. However, privatization may increase quality by fostering performance-improving innovation, particularly if combined with increased competition. We assemble a large data set on elderly care services in Sweden between 1990 and 2009 and estimate how opening to private provision affected mortality rates – an important and not easily contractible quality dimension – using a difference-in-difference-in-difference approach. The results indicate that privatization and the associated increase in competition significantly improved non-contractible quality as measured by mortality rates. © 2016
Place, publisher, year, edition, pages
2016. Vol. 49, 109-119 p.
Competition, Incomplete contracts, Mortality, Outsourcing, Public procurement
IdentifiersURN: urn:nbn:se:sh:diva-30642DOI: 10.1016/j.jhealeco.2016.06.010ISI: 000384869400009PubMedID: 27394007ScopusID: 2-s2.0-84977111534OAI: oai:DiVA.org:sh-30642DiVA: diva2:949509
FunderSwedish Research Council, 2008-22664-58604-33Swedish Competition Authority, 111/2008Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-2482