Informal, Formal, or Both? Assessing the Drivers of Home Care Utilization in Austria Using a Simultaneous Decision Framework

WIFO Working Papers No. 533/2017

36 Pages Posted: 1 Jun 2017

See all articles by Matthias Firgo

Matthias Firgo

Austrian Institute of Economic Research (WIFO)

Klaus Nowotny

University of Salzburg; Austrian Institute of Economic Research (WIFO)

Alexander Braun

Joanneum Research

Date Written: May 31, 2017

Abstract

Understanding the relation between different types of long-term care (LTC) and the determinants of individual choice of LTC types is fundamental for efficient policy making in times of aging societies. However, empirical research on this issue has revealed both national and methodological factors as crucial for the policy conclusions drawn. Thus, the purpose of the present paper is twofold: First, at least to our knowledge, it is the first comprehensive assessment of this kind for Austria. Second, it extends the scarce literature explicitly focusing on the combined use of informal and formal care in addition to the exclusive use of these services based on an econometric framework accounting for the simultaneity and interdependencies in these types of LTC. Our results provide strong evidence for a task-specific and complementary relation of formal and informal home care in Austria, with the health status and functional limitations as the main determinants of individual choice.

Keywords: long-term care, formal, informal, bivariate probit, SHARE, Austria

JEL Classification: C35, H44, I11, I12, J14

Suggested Citation

Firgo, Matthias and Nowotny, Klaus and Braun, Alexander, Informal, Formal, or Both? Assessing the Drivers of Home Care Utilization in Austria Using a Simultaneous Decision Framework (May 31, 2017). WIFO Working Papers No. 533/2017, Available at SSRN: https://ssrn.com/abstract=2977852 or http://dx.doi.org/10.2139/ssrn.2977852

Matthias Firgo (Contact Author)

Austrian Institute of Economic Research (WIFO) ( email )

Arsenal Objekt 20
Wien, 1030
Austria
+43-1-7982601-471 (Phone)

Klaus Nowotny

University of Salzburg ( email )

Residenzplatz 9
Salzburg, Salzburg 5020
Austria

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

Alexander Braun

Joanneum Research ( email )

8010 Graz
Austria

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
21
Abstract Views
329
PlumX Metrics