ABSTRACT
Joint finance not only represents a significant source of external funding for innovations in the community care for the elderly but serves also as a prototype for an increasing number of incentive led centrally government financed schemes. It is therefore important to understand its effects on the pattern of service provision. Indications of improvement of efficiency and effectiveness are derived and used to compare base budget and jointly financed innovations. The conclusion is that joint finance does, within the framework advanced, lead to limited gains in service efficiency and effectiveness.
