The determinants of exit from institutions and the price elasticity of institutional care: Evidence from Japanese micro-level data

Haruko Noguchi, Satoshi Shimizutani

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

This study examines how the price mechanism affects the length of residents' at institutions and their destination after exit. Using micro-level data from The Survey on Care Service Providers compiled by the Japanese government, we show that the price elasticity of the hazard of exit was 1.7 from welfare care facilities was 1.8 from health care facilities. Moreover, our estimates reveal that a 1 percentage point increase in copayments leads to an increase in the probability of returning home by 0.04% for residents of welfare care facilities and 3.7% for those of health care facilities and a decrease in the probability of being re-hospitalized by 3.3% for residents of health care facilities and 1.9% for those of medical care facilities. Our findings demonstrate that an appropriate price policy may work well to shorten clients' length of stay and to reduce the number of the socially institutionalized.

Original languageEnglish
Pages (from-to)131-142
Number of pages12
JournalJournal of The Japanese and International Economies
Volume25
Issue number2
DOIs
Publication statusPublished - 2011 Jun 1

Keywords

  • Institutional care
  • Japan
  • Long-term care insurance
  • Price elasticity
  • Social institutionalization
  • Survey on Care Service Providers

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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