Supplier-Induced Demand in Japan's At-home Care Industry: Evidence from Micro-level Survey on Care Receivers

Haruko Noguchi and Satoshi Shimizutani

ESRI Discussion paper series from Economic and Social Research Institute (ESRI)

Abstract: We observed a remarkable increase in elderly care expenses in Japan after the introduction of public elderly care insurance in 2000. This study explores the possibility that a greater number of care providers under the deregulation of the entry policy stimulated care utilization. We take advantage of an original household-level survey data on care receivers to address the existence of supplier-induced demand in Japan's elderly at-home care market, by distinguishing between demand for care receivers and for suppliers. Our empirical results based on the two-phase model found little evidence of supplier-induced demand in the Japanese at-home care market. We also observed that a higher portion of for-profits did not induce care demand. JEL classification: I11 Key words: supplier-induced demand; at-home care; long-term care insurance; survey on care receivers

Pages: 23 pages
Date: 2005-06
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Citations: View citations in EconPapers (3)

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