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Supplier density and at-home care use in Japan: Evidence from a micro-level survey on long-term care receivers

  • Noguchi, Haruko
  • Shimizutani, Satoshi

Following the introduction of the long-term care insurance scheme and deregulation of the market for at-home care services, Japan experienced a substantial increase in expenditure on care for the elderly. Using household-level survey data, we empirically examine whether the increase in care expenditure is associated with supplier density springing from the rise in the number of care providers following deregulation. We provide weak evidence that supplier density in the at-home care market is positively correlated with probability to use care or expenditure on care. Moreover, we find no link between the share of for-profit providers and the demand for at-home care services.

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File URL: http://www.sciencedirect.com/science/article/B6VF1-4W8VW3T-1/2/217a624c61030c7f372920d8f67f4840
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Article provided by Elsevier in its journal Japan and the World Economy.

Volume (Year): 21 (2009)
Issue (Month): 4 (December)
Pages: 365-372

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Handle: RePEc:eee:japwor:v:21:y:2009:i:4:p:365-372
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505557

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  1. Noguchi, Haruko & Shimizutani, Satoshi & Masuda, Yuichiro, 2007. "Regional Variations in Medical Expenditure and Hospitalization Days for Heart Attack Patients in Japan: Evidence from the Tokai Acute Myocardial Study (TAMIS)," PIE/CIS Discussion Paper 341, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  2. Eric Delattre & Brigitte Dormont, 2003. "Fixed fees and physician-induced demand: A panel data study on French physicians," Health Economics, John Wiley & Sons, Ltd., vol. 12(9), pages 741-754.
  3. Mitchell Olivia S. & PIGGOTT John & SHIMIZUTANI Satoshi, 2004. "Aged-Care Support in Japan: Perspectives and Challenges," ESRI Discussion paper series 118, Economic and Social Research Institute (ESRI).
  4. McGuire, Thomas G., 2000. "Physician agency," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 9, pages 461-536 Elsevier.
  5. Satoshi Shimizutani & Haruko Noguchi, 2005. "Nonprofit and for-profit providers in Japan's at-home care industry: evidence on quality of service and household choice," Economics Bulletin, AccessEcon, vol. 9(3), pages 1-13.
  6. Victor R. Fuchs, 1978. "The Supply of Surgeons and the Demand for Operations," NBER Working Papers 0236, National Bureau of Economic Research, Inc.
  7. Satoshi Shimizutani, 2006. "The Expansion in Long-term Care Use in Japan: A Case of Supplier-Induced Demand?," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(V), pages 91-95.
  8. Louis F. Rossiter & Gail R. Wilensky, 1984. "Identification of Physician-Induced Demand," Journal of Human Resources, University of Wisconsin Press, vol. 19(2), pages 231-244.
  9. repec:ebl:ecbull:v:9:y:2005:i:3:p:1-13 is not listed on IDEAS
  10. Satoshi Shimizutani, 2006. "Japan's Long-term Care Insurance Program: An Overview," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(V), pages 23-28.
  11. Dranove, David & Wehner, Paul, 1994. "Physician-induced demand for childbirths," Journal of Health Economics, Elsevier, vol. 13(1), pages 61-73, March.
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