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Affordable False Teeth: The Effects of Patient Cost Sharing on Denture Utilization and Subjective Chewing Ability

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  • Ando Michihito

    (National Institute of Population and Social Security Research, Hibiya Kokusai Building 6th Floor, 2-2-3 Uchisaiwaicho, Chiyoda-ku, Tokyo, 100–0011, Japan)

  • Takaku Reo

    (Institute for Health Economics and Policy, No.11 Toyo-kaiji Bldg, 1-5-11, Nishi-Shinbashi, Minato-ku, Tokyo, 105–0003, Japan)

Abstract

We evaluate the impact of patient cost sharing on the use of dentures and subjective chewing ability exploiting a sharp reduction in the coinsurance rate, the percentage of costs born by the user, from 30 % to 10 % at the age of 70 with a regression discontinuity design. Using data from the Japanese Study of Aging and Retirement (JSTAR), we find that the utilization rate of dentures increases from approximately 50 % to 63 % around the threshold, implying that the extensive margin elasticity of denture usage with respect to the coinsurance rate is about –0.41. In addition, we find this jump is almost entirely due to the change in the rate among women. On the other hand, we do not find a significant improvement in self-reported chewing ability, although chewing ability may not be the only social benefit from dentures. Our empirical findings are also confirmed by complementary analysis with randomization tests.

Suggested Citation

  • Ando Michihito & Takaku Reo, 2016. "Affordable False Teeth: The Effects of Patient Cost Sharing on Denture Utilization and Subjective Chewing Ability," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(3), pages 1387-1438, September.
    • Handle: RePEc:bpj:bejeap:v:16:y:2016:i:3:p:1387-1438:n:5
    DOI: 10.1515/bejeap-2015-0194
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    References listed on IDEAS

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    More about this item

    Keywords

    oral health; dentures; price elasticity; regression discontinuity design; cost sharing; randomization test;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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