First published in 1998. While previous studies have explored factors affecting the utilization of nursing home care by the elderly, few have used a nationally representative sample, and fewer still have investigated how price as well as supply affects utilization. The major purpose of this study is to model the effects of supply and demand for nursing home care on the utilization of such care by the elderly. A price elasticity of demand for nursing home care is estimated and factors affecting the supply and demand for nursing home care, and ultimately its utilization, are elucidated.