Differential market entry determinants for for-profit and nonprofit long-term care providers

Katsuyoshi Nakazawa

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: This study considers market entry determinants for both for-profit and non-profit at-home longterm care providers in Japan. It examines market structure incentives and barriers to entry using a panel dataset of 48 Japanese municipalities for the 2003–2011 period. Estimation results show that forprofits and non-profits face different determinants of entry. Potential for-profit entrants are sensitive to profit considerations and therefore adapt to the market structure and clear barriers to entry. However, potential non-profits with preferential tax treatment and the constraint of non-distribution of profits enter disadvantaged municipalities. Both profits and non-profits have become integrated in Japanese at-home care markets.

Keywords: Entry; For-profit; Non-profit; Long-term at-home care; SUR (search for similar items in EconPapers)
JEL-codes: C33 I13 L22 L33 R19 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2013
New Economics Papers: this item is included in nep-com and nep-ind
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201313

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