Affordable False Teeth: The Effects of Patient Cost Sharing on Denture Utilization and Subjective Chewing Ability

The B.E. Journal of Economic Analysis & Policy (Contributions), Volume 16, Issue 3, 1387–1438, 2016.

52 Pages Posted: 27 Apr 2015 Last revised: 27 Oct 2016

See all articles by Michihito Ando

Michihito Ando

Rikkyo University

Reo Takaku

Institute for Health Economics and Policy (IHEP)

Date Written: March 24, 2016

Abstract

We evaluate the impact of patient cost sharing on the use of dentures and subjective chewing ability exploiting a sharp reduction in the coinsurance rate, the percentage of costs born by the user, from 30% to 10% at the age of 70 with a regression discontinuity design. Using data from the Japanese Study of Aging and Retirement (JSTAR), we find that the utilization rate of dentures increases from approximately 50% to 63% around the threshold, implying that the extensive margin elasticity of denture usage with respect to the coinsurance rate is about -0.41. In addition, we find this jump is almost entirely due to the change in the rate among women. On the other hand, we do not find a significant improvement in self-reported chewing ability, although chewing ability may not be the only social benfi t from dentures. Our empirical findings are also confirmed by complementary analysis with randomization tests and placebo randomization tests.

Keywords: Oral health, dentures, price elasticity, regression discontinuity design, cost sharing, randomization test

JEL Classification: G51, H13, H15

Suggested Citation

Ando, Michihito and Takaku, Reo, Affordable False Teeth: The Effects of Patient Cost Sharing on Denture Utilization and Subjective Chewing Ability (March 24, 2016). The B.E. Journal of Economic Analysis & Policy (Contributions), Volume 16, Issue 3, 1387–1438, 2016.. Available at SSRN: https://ssrn.com/abstract=2599327 or http://dx.doi.org/10.2139/ssrn.2599327

Michihito Ando (Contact Author)

Rikkyo University ( email )

3-34-1 Nishi-Ikebukuro
Toshima-ku, Tokyo 171-8501
Japan

HOME PAGE: http://https://sites.google.com/site/michihito7ando/

Reo Takaku

Institute for Health Economics and Policy (IHEP) ( email )

No.11 Toyo-kaiji Bldg,1-5-11
Nishi-Shinbashi,Minato-ku
Tokyo, 105-0003
Japan

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