| Project/Area Number |
17H07182
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| Research Category |
Grant-in-Aid for Research Activity Start-up
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| Allocation Type | Single-year Grants |
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| Research Field |
Public finance/Public economy
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| Research Institution | Waseda University |
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Principal Investigator |
FU RONG 早稲田大学, 政治経済学術院, 助教 (70805259)
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| Project Period (FY) |
2017-08-25 – 2019-03-31
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| Project Status |
Completed (Fiscal Year 2018)
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| Budget Amount *help |
¥2,210,000 (Direct Cost: ¥1,700,000、Indirect Cost: ¥510,000)
Fiscal Year 2018: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2017: ¥1,170,000 (Direct Cost: ¥900,000、Indirect Cost: ¥270,000)
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| Keywords | Long-term Care Insurance / Moral Hazard / moral hazard / natural experiment / dynamic programming / long-term care insurance / matching method / 経済政策 |
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| Outline of Final Research Achievements |
We evaluate the presence and magnitude of moral hazard in Japan’s public long-term care insurance (LTCI) market. Using monthly LTCI claim records from January 2006 to December 2015 linked to concurrent death records, we construct a sample by propensity score matching insured individuals who copay 10% of their fees to those with no required copayments, and we implement fixed-effect estimations. We find that a ten-percentage-point reduction in the copayment rate increases monthly costs by 10.2 thousand yen, corresponding to a price elasticity of about -0.1. Insured individuals with no copayments tend to use more services and have more utilization days than those with copayments do.
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| Academic Significance and Societal Importance of the Research Achievements |
Fiscal sustainability is the greatest concern faced by Japan's LTCI. We verify the possibility of cost-sharing adjustments as one solution. Our findings may have broad implications for the rapidly aging world by providing valuable evidence for governments planning to launch public LTCI.
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