Relationship between Family Care and Public Care Services for the Elderly

Japan has been experiencing significant changes in its demographics. This study examines the effects of public care services and in doing so, aims to show that it is possible to improve overall welfare level by substituting family care with public care services, particularly when family care and public care services are interchangeable. In addition, we show that instead of reducing family care to zero, further expanding public care services can help achieve welfare optimization.