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The impact of competition on quality and prices in the English care homes market

Forder, Julien, Allan, Stephen (2013) The impact of competition on quality and prices in the English care homes market. Journal of Health Economics, 34 (1). pp. 73-83. ISSN 0167-6296. E-ISSN 1879-1646. (doi:10.1016/j.jhealeco.2013.11.010) (KAR id:38515)


This study assesses the impact of competition on quality and price in the English care/nursing homes market. Considering the key institutional features, we use a theoretical model to assess the conditions under which further competition could increase or reduce quality. A dataset comprising the population of 10,000 care homes was used. We constructed distance/travel-time weighted competition measures. Instrumental variable estimations, used to account for the endogeneity of competition, showed quality and price were reduced by greater competition. Further analyses suggested that the negative quality effect worked through the effect on price – higher competition reduces revenue which pushes down quality.

Item Type: Article
DOI/Identification number: 10.1016/j.jhealeco.2013.11.010
Uncontrolled keywords: Nursing homes; Competition; Quality; Instrumental variables; Product differentiation
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Divisions > Division for the Study of Law, Society and Social Justice > School of Social Policy, Sociology and Social Research > Personal Social Services Research Unit
Depositing User: Jane Dennett
Date Deposited: 28 Feb 2014 10:56 UTC
Last Modified: 16 Nov 2021 10:14 UTC
Resource URI: (The current URI for this page, for reference purposes)

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