The Demand for Nursing Home Care: An Analysis of the Substitution between Institutional and Noninstitutional Care

33 Pages Posted: 6 Jul 2004

See all articles by Barry R. Chiswick

Barry R. Chiswick

University of Illinois at Chicago; IZA Institute of Labor Economics

Date Written: July 1975

Abstract

This paper analyzes the demand for nursing home care for the aged. The cross-sectional analysis indicates a high price elasticity of demand (-2.2), and that the demand is greater the less capable are the aged of providing own care, the better the job opportunities of adult women, and the wealthier the SMSA. Utilization increased 67percentfrom 1963 to 1973,but 64 percentage points is attributable to changes in these demand shift variables. This casts doubt on the view that the growth in utilization was largely stimulated by changing public policies during the period.

Suggested Citation

Chiswick, Barry R., The Demand for Nursing Home Care: An Analysis of the Substitution between Institutional and Noninstitutional Care (July 1975). NBER Working Paper No. w0098. Available at SSRN: https://ssrn.com/abstract=228052

Barry R. Chiswick (Contact Author)

University of Illinois at Chicago ( email )

601 S. Morgan Street, Room 2103UH
Chicago, IL 60607-7121
United States
312-996-2683 (Phone)
312-996-3344 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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