The Share of Nonprofit and For-profit Organizations in the Quasi-market: An Analysis of the Long-term Care Services Market in Japan

This paper aims to examine the factors which affect the market shares of several nonprofit and for-profit providers in the long-term care insurance system. We focus on the impact of market size and growth, demand heterogeneity and philanthropic activities, using a prefectural panel data set. The results indicate, though not in all cases, that the market shares of 1) the market shares of nonprofit organizations are relatively larger in the areas with more unprofitable market conditions, 2) the market shares of citizen-driven nonprofit organizations are larger in the areas with more heterogeneous demand and 3) the market shares of citizen-driven nonprofit organizations are larger in the areas with more active civic voluntarism.