Quantifying the Impacts of Limited Supply : The Case of Nursing Homes

@inproceedings{Ching2012QuantifyingTI,
  title={Quantifying the Impacts of Limited Supply : The Case of Nursing Homes},
  author={Andrew T. Ching and Fumiko Hayashi},
  year={2012}
}
In the U.S. nursing home industry, supply is restricted by the certificate-of-need laws and Medicaid reimbursement rates are usually set lower than the private-pay prices. As a result, the nursing home industry has been thought to face two main problems: limited access/rationing and low quality. In this paper, we develop an empirical demand model and an estimation strategy that can account for excess demand, and the unobserved component of nursing home quality. Our methodology allows us to… CONTINUE READING

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