IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-19-01020.html
   My bibliography  Save this article

Heterogeneous Preferences for Micro Health Insurance Attributes in Rural Cambodia: Latent Class Analysis

Author

Listed:
  • Hiroki Wakamatsu

    (Fisheries Research and Education Agency)

  • Seiichi Fukui

    (Osaka Sangyo University)

  • Kana Miwa

    (Kushiro Public University of Economics)

Abstract

This study estimates the heterogeneous preferences and willingness-to-pay (WTP) of potential clients for different attributes of micro health insurance (MHI) and to seek a more acceptable insurance scheme in rural Cambodia. A latent class model is employed to treat with heterogeneity of consumer preferences, and found a two-class model as the best model, where one of the two classes is responsive to improvement of micro health insurance scheme. In the comparison of the two classes, the second class, comprising household heads who were younger and well-educated, with more remittances from migrant family members, more assets, and facing more illness, was significantly responsive to improvement in the insurance schemes. As for present time bias, we could not find any evidence that supports the hypothesis that it negatively affects WTP for MHI. In addition, our findings suggest that potential insurance customers who would have purchased MHI accounted for more than 60% in our study area, Thus, our results can be used to support improvements in existing MHI to attract more MHI customers.

Suggested Citation

  • Hiroki Wakamatsu & Seiichi Fukui & Kana Miwa, 2019. "Heterogeneous Preferences for Micro Health Insurance Attributes in Rural Cambodia: Latent Class Analysis," Economics Bulletin, AccessEcon, vol. 39(4), pages 2963-2975.
    • Handle: RePEc:ebl:ecbull:eb-19-01020
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I4-P275.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raghavan, R. & Aarons, G.A. & Roesch, S.C. & Leslie, L.K., 2008. "Longitudinal patterns of health insurance coverage among a national sample of children in the child welfare system," American Journal of Public Health, American Public Health Association, vol. 98(3), pages 478-484.
    2. Erik Schokkaert & Tom Van Ourti & Diana De Graeve & Ann Lecluyse & Carine Van de Voorde, 2010. "Supplemental health insurance and equality of access in Belgium," Health Economics, John Wiley & Sons, Ltd., vol. 19(4), pages 377-395, April.
    3. Maryam Bigdeli & Bart Jacobs & Chean Rithy Men & Kristine Nilsen & Wim Van Damme & Bruno Dujardin, 2016. "Access to Treatment for Diabetes and Hypertension in Rural Cambodia: Performance of Existing Social Health Protection Schemes," PLOS ONE, Public Library of Science, vol. 11(1), pages 1-18, January.
    4. Esther W. de Bekker‐Grob & Mandy Ryan & Karen Gerard, 2012. "Discrete choice experiments in health economics: a review of the literature," Health Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 145-172, February.
    5. Stephen K. Swallow & Thomas Weaver & James J. Opaluch & Thomas S. Michelman, 1994. "Heterogeneous Preferences and Aggregation in Environmental Policy Analysis: A Landfill Siting Case," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(3), pages 431-443.
    6. Vincenzo Atella & Francesco Brindisi & Partha Deb & Furio C. Rosati, 2004. "Determinants of access to physician services in Italy: a latent class seemingly unrelated probit approach," Health Economics, John Wiley & Sons, Ltd., vol. 13(7), pages 657-668, July.
    7. Michael Clark & Domino Determann & Stavros Petrou & Domenico Moro & Esther Bekker-Grob, 2014. "Discrete Choice Experiments in Health Economics: A Review of the Literature," PharmacoEconomics, Springer, vol. 32(9), pages 883-902, September.
    8. David Mark Dror, 2018. "Systematic Review of Willingness to Pay for Health Insurance in Low and Middle Income Countries," World Scientific Book Chapters, in: Financing Micro Health Insurance Theory, Methods and Evidence, chapter 8, pages 151-168, World Scientific Publishing Co. Pte. Ltd..
    9. Kirby, Kris N. & Godoy, Ricardo & Reyes-Garcia, Victoria & Byron, Elizabeth & Apaza, Lilian & Leonard, William & Perez, Eddy & Vadez, Vincent & Wilkie, David, 2002. "Correlates of delay-discount rates: Evidence from Tsimane' Amerindians of the Bolivian rain forest," Journal of Economic Psychology, Elsevier, vol. 23(3), pages 291-316, June.
    10. Seiro ITO & Hisaki KONO, 2010. "Why Is The Take‐Up Of Microinsurance So Low? Evidence From A Health Insurance Scheme In India," The Developing Economies, Institute of Developing Economies, vol. 48(1), pages 74-101, March.
    11. Schechter, Laura, 2007. "Traditional trust measurement and the risk confound: An experiment in rural Paraguay," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 272-292, February.
    12. Mandy Ryan & Karen Gerard & Gillian Currie, 2012. "Using Discrete Choice Experiments in Health Economics," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 41, Edward Elgar Publishing.
    13. Sisira Sarma & Wayne Simpson, 2006. "A microeconometric analysis of Canadian health care utilization," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 219-239, March.
    14. Levine, David & Polimeni, Rachel & Ramage, Ian, 2016. "Insuring health or insuring wealth? An experimental evaluation of health insurance in rural Cambodia," Journal of Development Economics, Elsevier, vol. 119(C), pages 1-15.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mahieu, Pierre-Alexandre & Andersson, Henrik & Beaumais, Olivier & Crastes dit Sourd, Romain & Hess, François-Charles & Wolff, François-Charles, 2017. "Stated preferences: a unique database composed of 1657 recent published articles in journals related to agriculture, environment, or health," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 98(3), November.
    2. Chen, Gang & Ratcliffe, Julie & Milte, Rachel & Khadka, Jyoti & Kaambwa, Billingsley, 2021. "Quality of care experience in aged care: An Australia-Wide discrete choice experiment to elicit preference weights," Social Science & Medicine, Elsevier, vol. 289(C).
    3. John Buckell & Vrinda Vasavada & Sarah Wordsworth & Dean A. Regier & Matthew Quaife, 2022. "Utility maximization versus regret minimization in health choice behavior: Evidence from four datasets," Health Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 363-381, February.
    4. Dunsch, Felipe Alexander & Velenyi, Edit, 2019. "Job Preferences of Frontline Health Workers in Ghana - A Discrete Choice Experiment," SocArXiv bqx5k, Center for Open Science.
    5. Brouwers, Jonas & Cox, Bianca & Van Wilder, Astrid & Claessens, Fien & Bruyneel, Luk & De Ridder, Dirk & Eeckloo, Kristof & Vanhaecht, Kris, 2021. "The future of hospital quality of care policy: A multi-stakeholder discrete choice experiment in Flanders, Belgium," Health Policy, Elsevier, vol. 125(12), pages 1565-1573.
    6. Huls, Samare P.I. & de Bekker-Grob, Esther W., 2022. "Can healthcare choice be predicted using stated preference data? The role of model complexity in a discrete choice experiment about colorectal cancer screening," Social Science & Medicine, Elsevier, vol. 315(C).
    7. Marta Trapero-Bertran & Beatriz Rodríguez-Martín & Julio López-Bastida, 2019. "What attributes should be included in a discrete choice experiment related to health technologies? A systematic literature review," PLOS ONE, Public Library of Science, vol. 14(7), pages 1-15, July.
    8. Sicsic, Jonathan & Krucien, Nicolas & Franc, Carine, 2016. "What are GPs' preferences for financial and non-financial incentives in cancer screening? Evidence for breast, cervical, and colorectal cancers," Social Science & Medicine, Elsevier, vol. 167(C), pages 116-127.
    9. Krucien, Nicolas & Heidenreich, Sebastian & Gafni, Amiram & Pelletier-Fleury, Nathalie, 2020. "Measuring public preferences in France for potential consequences stemming from re-allocation of healthcare resources," Social Science & Medicine, Elsevier, vol. 246(C).
    10. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part I. Macro-scale analysis of literature and integrative synthesis of empirical evidence from applied economics, experimental psychology and neuroimag," Journal of choice modelling, Elsevier, vol. 41(C).
    11. Swait, J. & de Bekker-Grob, E.W., 2022. "A discrete choice model implementing gist-based categorization of alternatives, with applications to patient preferences for cancer screening and treatment," Journal of Health Economics, Elsevier, vol. 85(C).
    12. Viberg Johansson, Jennifer & Shah, Nisha & Haraldsdóttir, Eik & Bentzen, Heidi Beate & Coy, Sarah & Kaye, Jane & Mascalzoni, Deborah & Veldwijk, Jorien, 2021. "Governance mechanisms for sharing of health data: An approach towards selecting attributes for complex discrete choice experiment studies," Technology in Society, Elsevier, vol. 66(C).
    13. Galina Besstremyannaya, 2014. "Heterogeneous effect of coinsurance rate on healthcare costs: generalized finite mixtures and matching estimators," Discussion Papers 14-014, Stanford Institute for Economic Policy Research.
    14. Mandy Ryan & Nicolas Krucien & Frouke Hermens, 2018. "The eyes have it: Using eye tracking to inform information processing strategies in multi‐attributes choices," Health Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 709-721, April.
    15. Mina Bahrampour & Joshua Byrnes & Richard Norman & Paul A. Scuffham & Martin Downes, 2020. "Discrete choice experiments to generate utility values for multi-attribute utility instruments: a systematic review of methods," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(7), pages 983-992, September.
    16. Dadang Jainal Mutaqin & Koichi Usami, 2019. "Smallholder Farmers’ Willingness to Pay for Agricultural Production Cost Insurance in Rural West Java, Indonesia: A Contingent Valuation Method (CVM) Approach," Risks, MDPI, vol. 7(2), pages 1-18, June.
    17. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    18. Joachim Marti & John Buckell & Johanna Catherine Maclean & Jody L. Sindelar, 2016. "To ‘Vape’ or Smoke? A Discrete Choice Experiment Among U.S. Adult Smokers," NBER Working Papers 22079, National Bureau of Economic Research, Inc.
    19. Krueger, Rico & Daziano, Ricardo A., 2022. "Stated choice analysis of preferences for COVID-19 vaccines using the Choquet integral," Journal of choice modelling, Elsevier, vol. 45(C).
    20. Verelst, Frederik & Willem, Lander & Kessels, Roselinde & Beutels, Philippe, 2018. "Individual decisions to vaccinate one's child or oneself: A discrete choice experiment rejecting free-riding motives," Social Science & Medicine, Elsevier, vol. 207(C), pages 106-116.

    More about this item

    Keywords

    Consumer preference; micro health insurance; developing countries; Cambodia;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-19-01020. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.