Incorporating Discrete Choice Experiments into Policy Decisions: Case of Designing Public Long-Term Care Insurance

Worawan Chandoevwit and Nada Wasi

No 134, PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: Discrete choice experiments (DCEs) have been widely used to elicit preferences in the health economics field but recent reviews found that DCE results are rarely incorporated into health policy decisions. We conjecture that one reason is most health policy practitioners only focus on estimating marginal willingness to pay (MWTP), the measure that is not directly applicable for policy-related questions. We show that when designing a new program, translating preference information into the demand for packages and benefits of alternative schemes (the choices made available) can make the DCE results more policy relevant. This concept is illustrated using data collected to evaluate the benefits of introducing a public long-term care insurance program to a middle-income country, Thailand. We find that preferences are very heterogeneous, implying that no one-size-fits-all solution exists. The estimates from the preferred model are then used to calculate benefits and losses (based on the consumer surplus measure) for plausible implementation scenarios such as different universal schemes, multiple-tier schemes, and schemes in which premium are subsidized for low-income households.

Keywords: Discrete Choice Experiments; Long-term Care Insurance; Unobserved Taste Heterogeneity; Consumer Surplus; Thailand (search for similar items in EconPapers)
JEL-codes: C35 D04 I13 I18 J18 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2020-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://www.pier.or.th/files/dp/pier_dp_134.pdf (application/pdf)

Related works:
Journal Article: Incorporating discrete choice experiments into policy decisions: Case of designing public long-term care insurance (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pui:dpaper:134

Ordering information: This working paper can be ordered from
https://www.pier.or.th/en/dp/134/

Access Statistics for this paper

More papers in PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ().