Persistent effects of temporary incentives: Evidence from a nationwide health insurance experiment

Aurelien Baillon (), Joseph Capuno, Owen O'Donnell, Carlos Antonio Tan and Kim van Wilgenburg

Journal of Health Economics, 2022, vol. 81, issue C

Abstract: Temporary incentives are offered in anticipation of persistent effects that are seldom estimated. We use a nationwide randomized experiment in the Philippines to estimate effects of two incentives for health insurance three years after their withdrawal. We find that both temporary incentives had persistent effects on enrollment. A premium subsidy had a small but highly persistent effect. Application assistance offered to those initially unresponsive to the subsidy had a much larger but less persistent effect. The subsidy persuaded those with higher initial stated willingness to pay to enroll and keep enrolling. The offer of application assistance to initial non-compliers with the subsidy achieved a larger immediate effect by drawing in those who stated they valued insurance less and were less likely to re-enroll when the incentives were withdrawn.

Keywords: Incentives; Persistence; Health insurance; Subsidy; Randomized experiment (search for similar items in EconPapers)
JEL-codes: C93 I13 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:81:y:2022:i:c:s016762962100165x

DOI: 10.1016/j.jhealeco.2021.102580

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