I thank the editor, two anonymous referees, Christian Boehler, Martin Karlsson, Jochen Kluve, Michael Kvasnicka, Therese Nilsson, Nigel Rice, Hendrik Schmitz, Matt Sutton, Tom Siedler, Gert G. Wagner and participants in seminars at the 2008 Latin American Meeting of the Econometric Society (LAMES), the 2009 Health Economists’ Study Group (HESG) Meeting in Manchester, the 2009 Annual Conference of the Royal Economic Society (RES), the 2009 Meeting of the European Economic Association (EEA), the 2009 Annual Conference of the European Association of Labour Economists (EALE), the SOEP Brown Bag and the Berlin Network of Labour Market Researchers (BeNA) for their helpful comments and discussions. I take responsibility for all remaining errors in and shortcomings of the article. Financial support in the form of a scholarship from the Stiftung der Deutschen Wirtschaft (sdw, Foundation of German Business) is gratefully ackknowledged.
Estimating Price Elasticities of Convalescent Care Programmes*
Version of Record online: 1 JUN 2010
© The Author(s). Journal compilation © Royal Economic Society 2010
The Economic Journal
Volume 120, Issue 545, pages 816–844, June 2010
How to Cite
Ziebarth, N. R. (2010), Estimating Price Elasticities of Convalescent Care Programmes. The Economic Journal, 120: 816–844. doi: 10.1111/j.1468-0297.2010.02370.x
- Issue online: 1 JUN 2010
- Version of Record online: 1 JUN 2010
- Submitted: 24 February 2009 Accepted: 26 October 2009
This study is the first to estimate price elasticities of demand for convalescent care programmes. In 1997, the German legislature more than doubled the daily co-payments for the publicly insured from €6 to €13. The measure caused the overall demand for convalescent care treatments to fall by 20 to 25%. I estimate the price elasticity for medical rehabilitation programmes aimed at preventing work disability to be about −0.3, whereas the elasticity for medical rehabilitation programmes for recovery from accidents at work lies around −0.5. The demand for preventive treatment at health spas is elastic and less than −1.