Health shock and preference instability: Assessing health-state dependency of willingness-to-pay for corrective eyeglasses
This article was published in BMC Health Economics Review [ © The Author(s). 2019 Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/)] and the definite version is available at: https://doi...
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| Acceso en línea: | http://hdl.handle.net/10361/16527 https://doi.org/10.1186/s13561-019-0249-3 |
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10361-165272022-04-10T21:01:34Z Health shock and preference instability: Assessing health-state dependency of willingness-to-pay for corrective eyeglasses Islam, Muhammed Nazmul Rabbani, Atonu Sarker, Malabika Brac James P. Grant School of Public Health State-dependent preferences Willingness to pay Triple-bounded dichotomous choice experiment Refractive errors Corrective eyeglasses This article was published in BMC Health Economics Review [ © The Author(s). 2019 Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/)] and the definite version is available at: https://doi.org/10.1186/s13561-019-0249-3 The Journal's website is at: https://healtheconomicsreview.biomedcentral.com/articles/10.1186/s13561-019-0249-3#citeas Background: Differences in contingent valuation (CV) estimates for identical healthcare goods can cast considerable doubt on the true economic measures of consumer preferences. Hypothetical nature of CV methods can potentially depend on the salience, context and perceived relevance of the good or service under consideration. Thus, the high demand elasticity for healthcare goods warrants careful selection of study population as the contexts of valuation significantly changes after experiencing health shock. Methods: In this study, using triple-bounded dichotomous choice (TBDC) experiments, we test how negative health shock (namely, being diagnosed with refractive errors), can alter preference over a common health good (namely, corrective eyeglasses). We compared elicited WTP of diagnosed patients with a synthetically constructed comparable cohort without the same health shock, controlling for the possible self-selection using a number of matching techniques based on the observable socio-demographic characteristics. Results: The consumers diagnosed with vision problems exhibit a rightward shift in their demand curve compared to observationally identical consumers without such problems resulting in about 17% higher consumer surplus. The consumers without the health shock are willing to pay about BDT 762.4 [95% CI: BDT 709.9 - BDT 814.9] for corrective eyeglasses, which gets 15–30% higher for the matched with-health-shock consumers. Multivariable analyses suggest more educated and wealthier individuals are willing to pay respectively BDT 208 and BDT 119 more for corrective eyeglasses. We have tested the models for different matching protocols. Our results are fairly robust to alternate specifications and various matching techniques. Conclusion: The preferences for healthcare goods, such as eyeglasses, can significantly depend upon the respondent being diagnosed with refractive errors. Our findings have implications for general cost-benefit analyses often relying on WTP, which can vary depending on the contexts. There are also increasing interests in cost recovery models, which require understanding the demand for healthcare goods and services. We find eliciting the demand needs to consider the health status of the population from which the respondents are sampled. Published 2022-04-10T06:42:59Z 2022-04-10T06:42:59Z 2019 2019-11-07 Journal Article Islam, M. N., Rabbani, A., & Sarker, M. (2019). Health shock and preference instability: Assessing health-state dependency of willingness-to-pay for corrective eyeglasses. Health Economics Review, 9(1) doi:10.1186/s13561-019-0249-3 http://hdl.handle.net/10361/16527 https://doi.org/10.1186/s13561-019-0249-3 en_US https://healtheconomicsreview.biomedcentral.com/articles/10.1186/s13561-019-0249-3#citeas Health Economics Review application/pdf BMC |
| institution |
Brac University |
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Institutional Repository |
| language |
en_US |
| topic |
State-dependent preferences Willingness to pay Triple-bounded dichotomous choice experiment Refractive errors Corrective eyeglasses |
| spellingShingle |
State-dependent preferences Willingness to pay Triple-bounded dichotomous choice experiment Refractive errors Corrective eyeglasses Islam, Muhammed Nazmul Rabbani, Atonu Sarker, Malabika Health shock and preference instability: Assessing health-state dependency of willingness-to-pay for corrective eyeglasses |
| description |
This article was published in BMC Health Economics Review [ © The Author(s). 2019 Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/)] and the definite version is available at: https://doi.org/10.1186/s13561-019-0249-3
The Journal's website is at: https://healtheconomicsreview.biomedcentral.com/articles/10.1186/s13561-019-0249-3#citeas |
| author2 |
Brac James P. Grant School of Public Health |
| author_facet |
Brac James P. Grant School of Public Health Islam, Muhammed Nazmul Rabbani, Atonu Sarker, Malabika |
| format |
Journal Article |
| author |
Islam, Muhammed Nazmul Rabbani, Atonu Sarker, Malabika |
| author_sort |
Islam, Muhammed Nazmul |
| title |
Health shock and preference instability: Assessing health-state dependency of willingness-to-pay for corrective eyeglasses |
| title_short |
Health shock and preference instability: Assessing health-state dependency of willingness-to-pay for corrective eyeglasses |
| title_full |
Health shock and preference instability: Assessing health-state dependency of willingness-to-pay for corrective eyeglasses |
| title_fullStr |
Health shock and preference instability: Assessing health-state dependency of willingness-to-pay for corrective eyeglasses |
| title_full_unstemmed |
Health shock and preference instability: Assessing health-state dependency of willingness-to-pay for corrective eyeglasses |
| title_sort |
health shock and preference instability: assessing health-state dependency of willingness-to-pay for corrective eyeglasses |
| publisher |
BMC |
| publishDate |
2022 |
| url |
http://hdl.handle.net/10361/16527 https://doi.org/10.1186/s13561-019-0249-3 |
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1814309128417312768 |