Asymmetric information, ownership and quality of care: An empirical analysis of nursing homes

Document Type

Article

Publication Date

2-23-2002

Abstract

Theoretically, when asymmetric information exists, nonprofit organizations, due to the attenuation of the property right, provide better quality of service than do the for-profits. Despite extensive theoretical examination of the behavior of nonprofits, there has been very little empirical testing of the plausibility of these theories. This article addresses the effect of ownership type on the quality of service in the nursing home industry, an environment particularly conducive to identifying the existence of asymmetric information. The study shows that the differences between for-profit and nonprofit homes do become manifest when asymmetric information is present. © 2002 Elsevier Science B.V. All rights reserved.

Identifier

0036168791 (Scopus)

Publication Title

Journal of Health Economics

External Full Text Location

https://doi.org/10.1016/S0167-6296(01)00123-0

ISSN

01676296

PubMed ID

11939243

First Page

293

Last Page

311

Issue

2

Volume

21

Grant

2RO1-AG-09468-04A1

Fund Ref

National Institute on Aging

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