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The Utilization of Outpatient Medical Services in Japan

Author

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  • 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.

Suggested Citation

  • Jayanta Bhattacharya & William B. Vogt & Aki Yoshikawa & Toshitaka Nakahara, 1996. "The Utilization of Outpatient Medical Services in Japan," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 450-476.
    • Handle: RePEc:uwp:jhriss:v:31:y:1996:i:2:p:450-476
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    Cited by:

    1. Galina Besstremyannaya, 2014. "The adverse effects of value-based purchasing in health care: dynamic quantile regression with endogeneity," Discussion Papers 14-006, Stanford Institute for Economic Policy Research.
    2. Mari Kan & Wataru Suzuki, 2006. "The demand for medical care in Japan: initial findings from a Japanese natural experiment," Applied Economics Letters, Taylor & Francis Journals, vol. 13(5), pages 273-277.
    3. Tamie Matsuura & Masaru Sasaki, 2012. "Can the health insurance reforms stop an increase in medical expenditures for middle- and old-aged persons in Japan?," International Journal of Health Economics and Management, Springer, vol. 12(2), pages 163-187, June.
    4. 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.
    5. 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.
    6. Galina Besstremyannaya, 2014. "The efficiency of labor matching and remuneration reforms: a panel data quantile regression approach with endogenous treatment variables," Working Papers w0206, New Economic School (NES).
    7. Naohiro Yashiro & Reiko Suzuki & Wataru Suzuki, 2006. "Evaluating Japan's Health Care Reform of the 1990s and Its Efforts to Cope with Population Aging," NBER Chapters, in: Health Care Issues in the United States and Japan, pages 17-42, National Bureau of Economic Research, Inc.
    8. Jean Marie Abraham & Thomas DeLeire & Anne Beeson Royalty, 2009. "Moral Hazard Matters: Measuring Relative Rates of Underinsurance Using Threshold Measures," NBER Working Papers 15410, National Bureau of Economic Research, Inc.
    9. Galina Besstremyannaya, 2014. "The efficiency of labor matching and remuneration reforms: a panel data quantile regression approach with endogenous treatment variables," Working Papers w0206, Center for Economic and Financial Research (CEFIR).
    10. Cutler, David M. & Zeckhauser, Richard J., 2000. "The anatomy of health insurance," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 11, pages 563-643, Elsevier.
    11. Galina Besstremyannaya, 2015. "Heterogeneous effect of residency matching and prospective payment on labor returns and hospital scale economies," Discussion Papers 15-001, Stanford Institute for Economic Policy Research.
    12. Reona Hagiwara, 2022. "Welfare Effects of Health Insurance Reform: The Role of Elastic Medical Demand," IMES Discussion Paper Series 22-E-05, Institute for Monetary and Economic Studies, Bank of Japan.
    13. Galina Besstremyannaya, 2015. "The adverse effects of incentives regulation in health care: a comparative analysis with the U.S. and Japanese hospital data," Working Papers w0218, Center for Economic and Financial Research (CEFIR).
    14. Galina Besstremyannaya, 2015. "The adverse effects of incentives regulation in health care: a comparative analysis with the U.S. and Japanese hospital data," Working Papers w0218, New Economic School (NES).

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