The Impact of Tax and Subsidy Policies on the Health Related Sectors with the Input-Output Table within a Computable General Equilibrium Framework in an Aging Japan

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When the balanced budget is not considered, a further increase in the subsidy to the hospital sector would result in the highest welfare. However, on the other hand, if the government budget has to be balanced, then such an expansion policy does not result in the same best outcome. Indeed, a subsidy cut to the hospital sector reversely eventuates in the highest welfare, when the budget surplus generated by the subsidy cut is used to increase the subsidy to the social welfare sector.