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Subsidies for influenza vaccination, vaccination rates, and health outcomes among the elderly in Japan

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  • Ibuka, Yoko
  • Bessho, Shun-ichiro

Abstract

Vaccination against infectious diseases produces externalities, and providing subsidies is one way of internalizing the externality. The effect of subsidies as a policy tool depends on individual's response to the cost of vaccine. However, there have been few studies on the effects of vaccine costs on vaccination uptake. Using regional variations in vaccination subsidy amount within Japan's current immunization program, we examined the impact of subsidies for the cost of influenza vaccine on the vaccination rates and on two health outcome measures. Our results show that an increase in the subsidy amount by 1,000 yen (10 USD) leads to a one percentage point increase in the vaccination rate among the elderly, suggesting that vaccination rate is responsive to the costs of vaccination. On the other hand, we found no substantial effects on health outcomes.

Suggested Citation

  • Ibuka, Yoko & Bessho, Shun-ichiro, 2015. "Subsidies for influenza vaccination, vaccination rates, and health outcomes among the elderly in Japan," Japan and the World Economy, Elsevier, vol. 36(C), pages 56-66.
    • Handle: RePEc:eee:japwor:v:36:y:2015:i:c:p:56-66
    DOI: 10.1016/j.japwor.2015.07.001
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    References listed on IDEAS

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    1. Philipson, Tomas, 2000. "Economic epidemiology and infectious diseases," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 33, pages 1761-1799, Elsevier.
    2. Kondo, Masahide & Hoshi, Shu-ling & Okubo, Ichiro, 2009. "Does subsidy work? Price elasticity of demand for influenza vaccination among the elderly in Japan," Health Policy, Elsevier, vol. 91(3), pages 269-276, August.
    3. Francis, Peter J., 1997. "Dynamic epidemiology and the market for vaccinations," Journal of Public Economics, Elsevier, vol. 63(3), pages 383-406, February.
    4. Boulier Bryan L. & Datta Tejwant S. & Goldfarb Robert S, 2007. "Vaccination Externalities," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-27, May.
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    Cited by:

    1. Shun-ichiro Bessho & Yoko Ibuka, 2016. "Vaccination policy of Japanese municipalities," Keio-IES Discussion Paper Series 2016-004, Institute for Economics Studies, Keio University.
    2. Shun‐ichiro Bessho & Yoko Ibuka, 2019. "Interdependency in vaccination policies among Japanese municipalities," Health Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 299-310, February.

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    More about this item

    Keywords

    Demand; Preventive care; Health production; Policy evaluation; Healthcare decision;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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