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The Utilization of Outpatient Medical Services in Japan

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Author Info

  • Jayanta Bhattacharya
  • William B. Vogt
  • Aki Yoshikawa
  • Toshitaka Nakahara

Abstract

We estimate the price elasticity of demand for outpatient care in Japan. We use a nationally representative microdata set consisting of nearly 440,000 Japanese patients. Using time between outpatient visits as a demand measure, we estimate a Cox proportional hazards model to calculate price effects. With predicted probabilities we simulate yearly utilization and obtain elasticity estimates. For most diagnostic categories, we obtain inelastic, downward sloping demand curves with price elasticities from -0.12 to -0.54. For the anomalous category we cannot reject a zero slope. The elasticity estimates for Japan are similar to U.S. estimates despite institutional differences.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 31 (1996)
Issue (Month): 2 ()
Pages: 450-476

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Handle: RePEc:uwp:jhriss:v:31:y:1996:i:2:p:450-476

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. Tamie Matsuura & Masaru Sasaki, 2010. "Can the health insurance reforms stop an increase in medical expenditures for middle- and old-aged persons in Japan?," Discussion Papers in Economics and Business 10-13-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Dec 2011.
  2. Tamie Matsuura & Masaru Sasaki, 2010. "Can the Health Insurance Reforms stop an increase in medical costs of middle- and old-aged persons in Japan?," Discussion Papers in Economics and Business 10-13, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  3. Kan, Mari & Suzuki, Wataru, 2010. "Effects of cost sharing on the demand for physician services in Japan: Evidence from a natural experiment," Japan and the World Economy, Elsevier, vol. 22(1), pages 1-12, January.

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