Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183442
Authors: 
Bergman, Mats A.
Jordahl, Henrik
Lundberg, Sofia
Year of Publication: 
2018
Series/Report no.: 
IFN Working Paper 1213
Abstract: 
We study a reform by which a standardized model of choice and competition was introduced in tax-financed home care in a majority of Swedish municipalities. The market for home care is of particular interest since it is close to the ideal quasi-market. For identification, we exploit the different timing of reform implementation across municipalities. We find that the introduction of free choice and free entry in home care increased perceived quality by about one quarter of a standard deviation without affecting costs. Since satisfaction is unrelated to the private market share, the underlying mechanism seems to be new choice opportunities rather than competition or an advantage of private providers.
Subjects: 
Choice
Competition
Privatization
Elderly care
New public management
JEL: 
H42
H75
I11
L33
Document Type: 
Working Paper
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