Volume 11, Number 3 (Summer) 1976
Chiswick, Barry R. 1976. "The Demand for Nursing Home Care: An Analysis of the Substitution Between Institutional and Noninstitutional Care." Journal of Human Resources 11(3):295-316.
This paper analyzes the demand for nursing home care for the aged. The cross-sectional analysis using SMSAs indicates a high price elasticity of demand (-2.3) and that the demand is greater the less capable are the aged to provide their own care (as measured by age, sex, and health), the better the job opportunities of adult women, and the greater the income. The 67 percent increase in utilization rates from 1963 to 1973 can be largely attributed to changes in these demand shift variables, suggesting that little of the growth in utilization was stimulated by changing public policies.
The author is Senior Staff Economics, Council of Economic Advisors. The views expressed are those of the author and do not necessarily represent those of the CEA. Christine Wilson's and Robert Schanzmeyer's research assistance is appreciated, as are the many helpful comments received from Carmel U. Chiswick, Michael Grossman, Michael C. Harris, the editor, and an anonymous referee. The computer costs were financed by the National Bureau of Economic Research.
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