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Differential market entry determinants for for-profit and nonprofit long-term care providers

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  • Katsuyoshi Nakazawa

    (University of Toyo)

Abstract

This study considers market entry determinants for both for-profit and non-profit at-home longterm care providers in Japan. It examines market structure incentives and barriers to entry using a panel dataset of 48 Japanese municipalities for the 2003–2011 period. Estimation results show that forprofits and non-profits face different determinants of entry. Potential for-profit entrants are sensitive to profit considerations and therefore adapt to the market structure and clear barriers to entry. However, potential non-profits with preferential tax treatment and the constraint of non-distribution of profits enter disadvantaged municipalities. Both profits and non-profits have become integrated in Japanese at-home care markets.

Suggested Citation

  • Katsuyoshi Nakazawa, 2013. "Differential market entry determinants for for-profit and nonprofit long-term care providers," MAGKS Papers on Economics 201313, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201313
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    File URL: https://www.uni-marburg.de/en/fb02/research-groups/economics/macroeconomics/research/magks-joint-discussion-papers-in-economics/papers/2013-papers/13-2013_nakazawa.pdf
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    References listed on IDEAS

    as
    1. Shapiro, Daniel & Khemani, R. S., 1987. "The determinants of entry and exit reconsidered," International Journal of Industrial Organization, Elsevier, vol. 5(1), pages 15-26, March.
    2. Satoshi Shimizutani & Haruko Noguchi, 2005. "Nonprofit and for-profit providers in Japan's at-home care industry: evidence on quality of service and household choice," Economics Bulletin, AccessEcon, vol. 9(3), pages 1-13.
    3. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
    4. Katsuyoshi Nakazawa, 2012. "Welfare-Induced Migration of the Elderly in Japan - Gender differences in welfare migration patterns among the elderly," MAGKS Papers on Economics 201242, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. A. G. Holtmann & Todd L. Idson, 1993. "Wage Determination of Registered Nurses in Proprietary and Nonprofit Nursing Homes," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 55-79.
    6. Orr, Dale, 1974. "The Determinants of Entry: A Sudy of the Canadian Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 58-66, February.
    7. Akihiro Kawase & Katsuyoshi Nakazawa, 2009. "Long-term Care Insurance Facilities and Interregional Migration of the Elderly in Japan," Economics Bulletin, AccessEcon, vol. 29(4), pages 2981-2995.
    8. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Entry; For-profit; Non-profit; Long-term at-home care; SUR;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other

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