Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/65967 
Year of Publication: 
2010
Series/Report no.: 
ISER Working Paper Series No. 2010-39
Publisher: 
University of Essex, Institute for Social and Economic Research (ISER), Colchester
Abstract: 
UK Local Authorities purchase care home places on behalf of a large group of people following a means test of their income and wealth. All other buyers of care home services are atomistic. The care home market is characterised by a large number of small providers. Local authorities may thus have buyer power. We show that any abuse of this buyer power may lead to some people, the squeezed middle not being served. We quantify the size of the squeezed middle and assess the implications of the form of the means test for local authorities' ability to exercise buyer power.
Subjects: 
buyer power
care home market
long term care financing
JEL: 
I11
I19
I31
Document Type: 
Working Paper

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