Empirical Analyses on the Moral Hazard Problems in the Demand andSupply of Health Care Services

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In this research project, I employ the nationally representative individual medical claim data, the Fact-finding Survey on Medical Assistance and the Survey of Medical Care Activities in Public Health Insurance from 2001 to 2007, conducted by the Ministry of Health, Labour and Welfare in Japan and examine the differences in the demand and supply of the medical care between the beneficiaries of the Public Assistance system and the enrollees of the public health insurance systems. I find that medical suppliers provide unnecessary inpatient and outpatient treatments to the beneficiaries and enrollees in response to the medical fee reductions and that the beneficiaries more visit medical institutions than the enrollees in their second and subsequent months.