Stated Preferences for Public Provision of Services: Experimental Evidence from Latin America

Hernán Bejarano (), Matias Busso () and Juan Francisco Santos ()
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Hernán Bejarano: Center for Economic Research and Teaching (CIDE) and Economic Science Institute, Chapman University
Matias Busso: Inter-American Development Bank
Juan Francisco Santos: Inter-American Development Bank

Working Papers from Chapman University, Economic Science Institute

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.

Keywords: Stated preferences; Willingness to pay; Public versus private provision; Service quality; Latin America (search for similar items in EconPapers)
JEL-codes: D12 H42 I18 I21 O54 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:chu:wpaper:26-01

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