The determinants of exit from institutions and the price elasticity of institutional care: Evidence from Japanese micro-level data

► The price mechanism on the length of stay at institutions and destination after exit are examined. The price elasticity of the hazard of exit was 1.7-1.8. An increase in copayments increases the probability of returning home. It decreases the probability of being re-hospitalized. A price policy may reduce length of stay and to reduce the number of the socially institutionalized.