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This examination of nursing home bed supply estimates undersupply in each of the states for the purpose of identifying the states with the greatest undersupply of beds. New data on state nursing home bed supply for the period 1979-1982 are used. The study employs selected independent variables in two different types of analyses to estimate bed supply for each state. Where a state is found to have a bed shortage, state public policymakers may wish to employ policies that differ from those suitable for states with an adequate supply of beds. Because of limitations in the data, issues of oversupply and of the extent of undersupply could not be examined.