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Persistent Effects of Temporary Incentives: Evidence from a Nationwide Health Insurance Experiment

Author

Listed:
  • Aurélien Baillon

    (Erasmus University Rotterdam)

  • Joseph Capuno

    (University of the Philippines Diliman)

  • Owen O'Donnell

    (Erasmus University Rotterdam)

  • Carlos Tan

    (University of the Philippines Diliman)

  • Kim van Wilgenburg

    (Erasmus University Rotterdam)

Abstract

Temporary incentives are offered in anticipation of persistent effects, but these are seldom estimated. We use a nationwide randomized experiment in the Philippines to estimate effects three years after the withdrawal of two incentives for health insurance. A premium subsidy had a persistent effect on enrollment that is more than four fifths of the immediate effect. Application assistance had a much larger immediate impact, but less than a fifth of this effect persisted. The subsidy persuaded those with higher initial willingness to pay to enroll and keep enrolling, while application assistance achieved a larger immediate effect by drawing in those who valued insurance less and were less likely to re-enroll.

Suggested Citation

  • Aurélien Baillon & Joseph Capuno & Owen O'Donnell & Carlos Tan & Kim van Wilgenburg, 2019. "Persistent Effects of Temporary Incentives: Evidence from a Nationwide Health Insurance Experiment," Tinbergen Institute Discussion Papers 19-078/V, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20190078
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    Cited by:

    1. Michael R.M. Abrigo & Timothy J. Halliday & Teresa Molina, 2022. "Expanding health insurance for the elderly of the Philippines," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(3), pages 500-520, April.
    2. Timo R. Lambregts & Paul Bruggen & Han Bleichrodt, 2021. "Insurance decisions under nonperformance risk and ambiguity," Journal of Risk and Uncertainty, Springer, vol. 63(3), pages 229-253, December.
    3. Aurélien Baillon & Owen O'Donnell & Stella Quimbo & Kim van Wilgenburg, 2022. "Do time preferences explain low health insurance take‐up?," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 89(4), pages 951-983, December.

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    More about this item

    Keywords

    incentives; persistence; health insurance; subsidy; randomized experiment;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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