How does the generosity of social insurance coverage affect demand for healthcare and health outcomes of elderly people? This paper examines the effects of insurance coverage on long-term care (LTC) utilization and its health consequences using novel administrative data of the public long-term...

This paper examines the economic consequences of manipulation of social insurance benefits. Using administrative data of the public long-term care insurance (LTCI) in Japan, we document novel discontinuity and bunching in the distribution of health scores that determine benefit levels for LTCI....