Abstract
The Netherlands, like many European countries, is facing a situation of stagnating or declining population. Also, the aged population will grow both in a relative and in an absolute sense. In this paper the impact of prices on the demand for services for older people is analyzed. First, recent demographic developments in the Netherlands are sketched, followed by a brief overview of relevant supply and demand aspects of services used mainly by the elderly generation. Then a conceptual model is developed for analyzing the demand for services for these elderly followed by an empirical application—on the basis of a multinomial logit model—to the Dutch province of Zeeland. Particular attention is given to the question whether the demand for services for the elderly is price determined or essentially the result of ‘forced’ decisions. It turns out that price does not play a significant role. The paper concludes with an outline of further research in this area.
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