Pay less, consume more? The price elasticity of home care of the disabled elderly in France - Archive ouverte HAL Access content directly
Journal Articles Health Economics Year : 2017

Pay less, consume more? The price elasticity of home care of the disabled elderly in France

Abstract

Little is known about the price sensitivity of demand for home care of the disabled elderly. We partially ll this knowledge gap by using administrative data on the bene ficiaries of the main French home care subsidy program in a department and exploiting inter|individual variation in provider prices. We address the potential endogeneity of prices by taking advantage of the unequal spatial coverage of providers and instrumenting price by the number of municipalities served by a provider. We estimate a price elasticity of around -0.4 that is signi ficantly different from both 0 and -1. This less than proportionate response of consumption to price has implications for the efficiency and redistributive impact of variation in the level of co-payments in home care subsidy schemes.
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Dates and versions

hal-01385678 , version 1 (21-10-2016)
hal-01385678 , version 2 (24-09-2019)

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Quitterie Roquebert, Marianne Tenand. Pay less, consume more? The price elasticity of home care of the disabled elderly in France. Health Economics, 2017, ⟨10.1002/hec.3531⟩. ⟨hal-01385678v2⟩
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