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Do informal risk sharing networks crowd out public voluntary health insurance? Evidence from Vietnam

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  • Matthew Jowett

Abstract

Many governments in low-income countries have promoted voluntary health insurance schemes in recent years, with the principal aim of improving access to services amongst those working in the informal economy. Few attempts to understand demand for such schemes exist, particularly in light of the importance of informal social security arrangements for many households. A model of demand for health insurance is developed reflecting this context, and estimated using data from Vietnam. The results show that informal financial networks may crowd out government promoted health insurance. Implications for theory and policy are discussed.

Suggested Citation

  • Matthew Jowett, 2003. "Do informal risk sharing networks crowd out public voluntary health insurance? Evidence from Vietnam," Applied Economics, Taylor & Francis Journals, vol. 35(10), pages 1153-1161.
    • Handle: RePEc:taf:applec:v:35:y:2003:i:10:p:1153-1161
    DOI: 10.1080/0003684032000079152
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    References listed on IDEAS

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    1. Narayan, Deepa & Pritchett, Lant, 1997. "Cents and sociability : household income and social capital in rural Tanzania," Policy Research Working Paper Series 1796, The World Bank.
    2. Pedro Albarran & Orazio P. Attanasio, 2002. "Do Public Transfers Crowd Out Private Transfers?: Evidence from a Randomized Experiment in Mexico," WIDER Working Paper Series DP2002-06, World Institute for Development Economic Research (UNU-WIDER).
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