nep-mfd New Economics Papers
on Microfinance
Issue of 2016‒01‒03
one paper chosen by
Olivier Dagnelie
Université de Caen

  1. The demand for health microinsurance services: assessment of the contribution effort using microeconomic data By El Aida, Kawtar; El Kadiri, Mounir; Mourji, Fouzi

  1. By: El Aida, Kawtar; El Kadiri, Mounir; Mourji, Fouzi
    Abstract: This paper analyzes subscription and willingness to pay (WTP) effort decisions among microcredit clients for a health microinsurance service in Morocco. We use data from a survey conducted among 562 microcredit clients belonging to two instututions. To estimate clients WTPs’ efforts, we choose the contingent valuation method. We analyze the different steps of decision by using simple and generalized Tobit. The results highlight the effect of socio-economic and financial variables including clients’ participation in formal and informal insurance mechanisms. We explain that they think in terms of substitution in one case, and complementarity in the other. The effect of savings reveals that clients want to maximize the collective utility of their households.
    Keywords: health microinsurance, contingent valuation, Tobit, willingness to pay
    JEL: C34 I11 I13 Q51
    Date: 2015–02–06

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