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Needs, economic constraints, and the distribution of public home-care

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When private goods are publicly provided at subsidized prices, government authorities have to determine the distribution of services on recipients. The distribution of services according to need is frequently referred to as an important policy goal. Thus governments are assumed to develop standards for evaluating the relative needs of different clients. This paper analyses the impact of needs and economic constraints on the distribution of public home-care in Norway. The empirical results show that individual needs have a significant effect on the distribution of home-care. Another finding is that local public authorities with higher disposable incomes meet client needs better. Finally the results are utilized to derive a measure of client-specific need.

Document Type: Research Article


Affiliations: Research Department Statistics Norway PO Box 8131 Dep. N-0033 Oslo Norway, Email:

Publication date: March 1, 2004

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