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Knowing and Unknowing Purchases of Undeclared Healthcare Goods and Services: The Role of Vertical and Horizontal Trust

Author

Listed:
  • Ioana Alexandra Horodnic

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, 700505 Iași, Romania)

  • Colin C. Williams

    (Management School, University of Sheffield, Sheffield S10 2TN, UK)

  • Alexandru Maxim

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, 700505 Iași, Romania)

  • Iuliana Claudia Stoian

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, 700505 Iași, Romania)

  • Oana Carmen Țugulea

    (Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, 700505 Iași, Romania)

  • Adrian V. Horodnic

    (Faculty of Medicine, Grigore T. Popa University of Medicine and Pharmacy, 700115 Iași, Romania)

Abstract

Although major advances have been made in relation to explaining the supply side of the informal economy, this is not the case for the demand-side of the informal economy. This study analyses for the first time the purchasers of undeclared goods and services in the healthcare sector. To evaluate the purchase of undeclared healthcare goods and services, logistic regression analysis and robustness tests are used on 3048 interviews in Cyprus, Greece, Italy and Malta. The finding is that an important share of the purchasers make this type of purchase unknowingly. However, no difference in terms of socio-economics characteristics of those who knowingly and those who unknowingly made purchases of undeclared healthcare goods and services was identified. Meanwhile a significant influence of trust (in government and in other citizens) has been identified in relation to those who made these purchases knowingly. As such, policy measures aimed at decreasing unknowing purchases and at nurturing trust are discussed in the concluding section.

Suggested Citation

  • Ioana Alexandra Horodnic & Colin C. Williams & Alexandru Maxim & Iuliana Claudia Stoian & Oana Carmen Țugulea & Adrian V. Horodnic, 2021. "Knowing and Unknowing Purchases of Undeclared Healthcare Goods and Services: The Role of Vertical and Horizontal Trust," IJERPH, MDPI, vol. 18(21), pages 1-14, November.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:21:p:11561-:d:671653
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    References listed on IDEAS

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    Cited by:

    1. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.

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