@article {11374, title = {Nursing Homes in Equilibrium: Implications for Long-term Care Policies}, number = {MRDRC WP 2020-414}, year = {2020}, institution = {Michigan Retirement and Disability Research Center, University of Michigan}, address = {Ann Arbor, MI}, abstract = {We build an equilibrium model of the market for nursing home care with decision-makers on both sides of the market. The nursing home demand arises as a result of stochastic dynamic optimizations by households heterogeneous in age, health, wealth; and the cost of home-andcommunity-based care. On the supply side, locally competitive nursing homes decide prices and care intensity. The government pays for the long-term care of the poorest. We estimate the model parameters using Health and Retirement Survey and simulate the model to quantitatively evaluate the effects of long-term care policies on prices, intensities, care allocation, and welfare.}, keywords = {Long-term Care, nursing home}, url = {https://mrdrc.isr.umich.edu/publications/papers/pdf/wp414.pdf}, author = {Koreshkova, Tatyana and Lee, Minjoon} }