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Privatization and quality: evidence from elderly care in Sweden
Södertörns University, Sweden.ORCID iD: 0000-0001-5026-9479
IFAU, Uppsala University, Uppsala, Sweden.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. (Nationalekonomi)ORCID iD: 0000-0001-6094-9099
Stockholm School of Economics SITE, Sweden.
2014 (English)Report (Other academic)
Abstract [en]

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. It also reduced the cost per resident, although left total cost unaffected.

Place, publisher, year, edition, pages
London: Centre for Economic Policy Research , 2014. no 9939
Series
CEPR Discussion Paper Series, ISSN 0265-8003 ; DP9939
Keywords [en]
competition; incomplete contracts; limited enforcement; mortality; nursing homes; outsourcing; performance measurement; privatization; procurement; public services; quality
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-99852OAI: oai:DiVA.org:umu-99852DiVA, id: diva2:788333
Funder
Swedish Research CouncilAvailable from: 2015-02-13 Created: 2015-02-13 Last updated: 2024-01-18Bibliographically approved

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Bergman, MatsLundberg, Sofia

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf