Health Expenditure Financing as Incentive for Participation in ROSCAs
AbstractRotating Savings and Credit Associations (ROSCAs) are a common informal saving method recognized as a social protection system that can be used to deal with the monetary consequences of different types of economic shocks. This paper tests the hypothesis that current participation in ROSCAs will be encouraged when funds saved during previous membership in such associations were useful for financing extraordinary as well as unexpected expenses related to health needs. The probit model estimation supports this hypothesis and also suggests that savings from ROSCAs used for preventive health services encourage further participation.
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Bibliographic InfoArticle provided by UNIVERSIDAD DE LOS ANDES-CEDE in its journal REVISTA DESARROLLO Y SOCIEDAD.
Volume (Year): (2009)
Issue (Month): ()
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ROSCAs; health expenditures; informal health financing; vulnerability; Mexico;
Find related papers by JEL classification:
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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