Abstract
The Japanese public long-term care insurance for the elderly is unequivocally a problem both for the health care system and as a social issue. The issues for the socially hospitalized and institutionalized are still unsolved due to a lack of family and community support. A central feature is to investigate the behavioral choices among elderly formal/informal home care and nursing home care. This study uses the General Survey on Actual Living Conditions of Elderly People as a natural experiment to analyze behavioral decision-making between the nursing home care and community-based formal/informal home care among the elderly. A logit model analysis that controls for socio-economic, demographic and physical/mental health influential factors was conducted. Developing community-based formal/informal home care would lead to economic gains. A provision of compensation to family health caregivers for their informal home care for the elderly is a key factor and a viable option.
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