Work

Stated preferences for public provision of services: Experimental evidence from Latin America

Year: 2026

Type: article

Abstract: We study how individuals in six Latin American countries value public versus private provision of education and healthcare using a survey experiment. Respondents were randomly assigned to vignettes that vary income, service quality, and provider type. Reported service quality is the main driver of choices: the probability of selecting a private provider roughly doubles when reported quality of the public option falls from 80 to 20 percent, while income has a smaller effect. Higher institutional trust lowers the likelihood of switching to private providers but does not affect willingness to pay once individuals choose private provision. • Perceived service quality is the main driver of private take-up in education and healthcare. • Income effects on private demand are smaller and less systematic than quality effects. • Higher institutional trust reduces exit from public services but not willingness to pay.

Source: Economics Letters

DOI: 10.1016/j.econlet.2026.112872

Authors: Hernan Bejarano, Matias Busso, Juan Francisco Santos

Institutions: Chapman University, Centro de Investigación y Docencia Económicas, Inter-American Development Bank

Language: English

Topic: Economic and Environmental Valuation

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,030