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Dealing with internal inconsistency in double-bounded dichotomous choice: an application to community-based health insurance

Author

Listed:
  • Hermann Pythagore Pierre Donfouet

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • P. Wilner Jeanty

    (Kinder Institute for Urban Research & Hobby Center for the Study of Texas - Rice University [Houston])

  • Pierre-Alexandre Mahieu

    (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)

Abstract

Contingent valuation method is commonly used in the field of health economics in an attempt to help policy makers in their policy-making decision process. The use of the double-bounded dichotomous choice format results in a substantial gain in statistical efficiency over the single-bounded dichotomous choice format. Yet, there is internal inconsistency with a downward mean shifting in the second responses. Using data from a community-based health insurance survey, this paper aims at testing whether double certainty calibration reduces internal inconsistency in a double-bounded dichotomous choice contingent valuation survey. Results suggest that double calibration significantly reduces internal inconsistency while maintaining the efficiency gain arising from the double-bounded format.

Suggested Citation

  • Hermann Pythagore Pierre Donfouet & P. Wilner Jeanty & Pierre-Alexandre Mahieu, 2014. "Dealing with internal inconsistency in double-bounded dichotomous choice: an application to community-based health insurance," Post-Print halshs-00761049, HAL.
  • Handle: RePEc:hal:journl:halshs-00761049
    DOI: 10.1007/s00181-012-0665-2
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00761049
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    Cited by:

    1. Mayam Moeeni & Shirin Nosratnejad, 2019. "Never will I give advice till you please to ask me thrice: Estimating willingness to pay for health insurance using 3 different methods with evidence from Iran," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(1), pages 594-601, January.
    2. Pierre-Alexandre Mahieu & François-Charles Wolff & Jason Shogren & Pascal Gastineau, 2017. "Interval bidding in a distribution elicitation format," Applied Economics, Taylor & Francis Journals, vol. 49(51), pages 5200-5211, November.
    3. Ousmane Z. Traoré & Lota D. Tamini & Bernard Korai, 2023. "Willingness to pay for credence attributes associated with agri‐food products—Evidence from Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(3-4), pages 303-327, September.

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    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • D6 - Microeconomics - - Welfare Economics
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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