Household Responses to Public Health Services: Cost and Quality Tradeoffs

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Household Responses to Public Health Services: Cost and Quality Tradeoffs

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Alderman, Harold
Lavy, Victor

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Abstract

The effectiveness of government investments in health care depends on the public's response to price and quality as well as on whether these expenditures actually improve health outcomes. Consumers, even those in low-income households, are willing to pay fees for better health care if the fees translate into improved access and reliability. But when prices rise without a concomitant improvement in services, malnutrition and child mortality rates increase. The availability of basic health care has a relatively greater impact on households with low incomes or low education, or both, than does the provision of more specialized services. This article describes the types of services for which households indicate they are willing to pay increased fees. It also indicates the potential gains from improving these services, as well as the consequences of moving faster on cost recovery than on providing improved or better-targeted services. Copyright 1996 by Oxford University Press.

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Article provided by Oxford University Press in its journal World Bank Research Observer.

Volume (Year): 11 (1996)
Issue (Month): 1 (February)
Pages: 3-22
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Handle: RePEc:oup:wbrobs:v:11:y:1996:i:1:p:3-22

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Hammer, Jeffrey S, 1997. "Economic Analysis for Health Projects," World Bank Research Observer, Oxford University Press, vol. 12(1), pages 47-71, February. [Downloadable!]
Castro-Leal, Florencia & Dayton, Julia & Demery, Lionel & Mehra, Kalpana, 1999. "Public Social Spending in Africa: Do the Poor Benefit?," World Bank Research Observer, Oxford University Press, vol. 14(1), pages 49-72, February. [Downloadable!]
Paul Collier & Stefan Dercon & John Mackinnon, 2004. "Density versus Quality in Health Care Provision: Using Household Data to Make Budgetary Choices in Ethiopia," Development and Comp Systems 0409052, EconWPA. [Downloadable!]
Other versions:
- Paul Collier & Stefan Dercon & John Mackinnon, 2002. "Density versus Quality in Health Care Provision: Using Household Data to Make Budgetary Choices in Ethiopia," World Bank Economic Review, Oxford University Press, vol. 16(3), pages 425-448, December.
Magnus Lindelow, 2004. "Understanding spatial variation in the utilization of health," Development and Comp Systems 0409058, EconWPA. [Downloadable!]
Hammer, Jeffrey S., 1996. "Economic analysis for health projects," Policy Research Working Paper Series 1611, The World Bank. [Downloadable!]
Lindelow, Magnus, 2002. "Health care demand in rural Mozambique," FCND discussion papers 126, International Food Policy Research Institute (IFPRI). [Downloadable!]
Orazem, Peter & Gunnarsson, L. Victoria, 2004. "Child Labour, School Attendance and Performance: A Review," Staff General Research Papers 11177, Iowa State University, Department of Economics. [Downloadable!]
Canaviri, Jose, 2007. "A Random Parameter Logit model for modeling Health Care Provider Choice in Bolivia," MPRA Paper 3263, University Library of Munich, Germany. [Downloadable!]
Gauri, Varun, 2001. "Are incentives everything? payment mechanisms for health care providers in developing countries," Policy Research Working Paper Series 2624, The World Bank. [Downloadable!]
Grosh, Margaret E & Glewwe, Paul, 1998. "Data Watch: The World Bank's Living Standards Measurement Study Household Surveys," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 187-96, Winter. [Downloadable!] (restricted)
Devarajan, Shantayanan & Hammer, Jeffrey S., 1998. "Risk reduction and public spending," Policy Research Working Paper Series 1869, The World Bank. [Downloadable!]
Hentschel, Jesko, 1998. "Distinguishing between types of data and methods of collecting them," Policy Research Working Paper Series 1914, The World Bank. [Downloadable!]

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