The aim of this paper to analyze the economic relation between prevention and privat health insurance. The insurance theory has expected that the pervasion of private health insurance join with moral hazard effect. The moral hazard is defined as the effect of an additional coverage lowering the level of prevention. We estimated the prevention functions and then tested the role of private health insurance. In conclusion, we observed that there is its relation between smoking behavior and private insurance.

The purpose of this study is to analyze the Research and Development (R&D) expenditure of new chemical entities (NCE) for the last two decades. Two main reasons can be put forth for this study. One is that cost and return analysis of commercial use of genetic resources is one of the best approaches to address benefit-sharing issue which is regulated in the Convention on Biological Diversity. Secondly, there are a few studies focusing on the analysis of the R&D expenditure of NCE in Japanese pharmaceuticals, especially from the perspective of time series analysis.

According to past studies, two approaches existed in addressing estimation of the R&D expenditure of NCE. One is a regression analysis utilizing aggregated data of pharmaceutical industry. The other is a questionnaire study for each pharmaceutical company. In this study, we adopted a new way of estimating the R&D expenditure of NCE in Japan. We used aggregate pharmaceutical data and the results of existing multi-firm project level studies.

Results show that average R&D expenditure per NCE is estimated in the range of 6.9 to 7.4 billion JP yen in 1985 and increased to 25.5 to 28.0 billon JP yen in 1995. According to this study, R&D expenditure will be peak around 2000.

Although drug price has been depreciated so far assuming physicians prescribing too many drugs under fee-for-service system, there is few pieces of research about physicians' prescription behaviour in Japan. In this paper, we carried out a questionnaire survey asking physicians what they take into account when prescribing. The findings of this research are as follows. First of all, physicians regard cost burden on patients as important as much as medical factors. Secondly, they do not have much knowledge about drug prices, and this tendency remarkable for those who do not purchase drugs by themselves. Third, After we control patients' characteristics, no difference was found out in the probability of prescribing higher price drugs between physicians dispense in their offices and those use dispensing pharmacies. Forth, Although the attitude survey shows that physicians take cost into account, we can not explain differences in prescription behaviour using perceived drug prices of physicians.

There is a demand for a core set of financial data provided by National Health Account, and OECD provided an international standard to estimate the health expenditure, "A System of Health Accounts" (SHA). We estimated the total health expenditure of Japan in accordance with SHA for each year between fiscal year 1995 and 1999. The total health expenditure increased from 33,745 billion yen in fiscal year 1995 to about 38,011 billion yen in fiscal year 1999, and the national medical expenditure "Kokumin-Iryohi" accounted it for around 80%-81.5%. Through this estimation, we were able to improve the international comparability of the total health expenditure, and to provide the statistics which were helpful to assess the healthcare policy. It is hoped that the research about this be continued to consider the health care reform which bases the multiphase analysis over the health expenditure.