scholarly journals Measuring Ex Ante Welfare in Insurance Markets

2020 ◽  
Author(s):  
Nathaniel Hendren
Keyword(s):  
Willingness To Pay ◽  
Expected Utility ◽  
Low Income ◽  
Reduced Form ◽  
Cost Curve ◽  
Optimal Insurance ◽  
Percentage Difference ◽  
Ex Ante ◽  
Information Sets ◽  
Market Surplus

Abstract The willingness to pay for insurance captures the value of insurance against only the risk that remains when choices are observed. This article develops tools to measure the ex ante expected utility impact of insurance subsidies and mandates when choices are observed after some insurable information is revealed. The approach retains the transparency of using reduced-form willingness to pay and cost curves, but it adds one additional sufficient statistic: the percentage difference in marginal utilities between insured and uninsured. I provide an approach to estimate this additional statistic that uses only the reduced-form willingness to pay curve, combined with a measure of risk aversion. I compare the approach to structural approaches that require fully specifying the choice environment and information sets of individuals. I apply the approach using existing willingness to pay and cost curve estimates from the low-income health insurance exchange in Massachusetts. Ex ante optimal insurance prices are roughly 30% lower than prices that maximize observed market surplus. While mandates reduce market surplus, the results suggest they would actually increase ex ante expected utility.

Is the local wheat market a ‘market for lemons’? Certifying the supply of individual wheat farmers in Ethiopia

2021 ◽  
Author(s):  
Banawe Plambou Anissa ◽  
Gashaw Abate ◽  
Tanguy Bernard ◽  
Erwin Bulte
Keyword(s):  
Asymmetric Information ◽  
Willingness To Pay ◽  
Wheat Quality ◽  
High Quality ◽  
Auction Design ◽  
Market For Lemons ◽  
Wheat Market ◽  
Ex Ante

Abstract Bulking and mixing of smallholder supply dilutes incentives to supply high quality. We introduce wheat ‘grading and certification shops’ in Ethiopia and use an auction design to gauge willingness-to-pay (WTP) for certification. Bids correlate positively with wheat quality, and ex ante notification of the opportunity of certification improves wheat quality. These findings suggest that local wheat markets resemble a ‘market for lemons’, crippled by asymmetric information. However, aggregate WTP for grading and certification services does not re-coup the sum of fixed, flow and variable costs associated with running a single certification shop.

Pengaruh Pendapatan, Pengetahuan Dan Kerentanan Penyakit Terhadap Willingness To Pay (WTP) Premi Jaminan Kesehatan Pada Pekerja Sektor Informal

2021 ◽  
Vol 7 (1) ◽  
pp. 48-59
Author(s):  
Anom Dwi Prakoso
Keyword(s):  
Health Insurance ◽  
Willingness To Pay ◽  
Informal Sector ◽  
Low Income ◽  
Disease Susceptibility ◽  
Universal Coverage ◽  
Health Coverage ◽  
Cross Sectional ◽  
Susceptibility Data ◽  
Central Java

  Background: The Indonesian Government's target of Universal Coverage or 100% Health Insurance participation by 2019 failed to be achieved, even until the end of October 2020. The failure of universal coverage resulted in BPJS Health's finances getting worse after experiencing a deficit. Informal sector workers are the most dominant sector that has not participated in the Health Insurance scheme, totaling 30,487,891 workers. Low income, uncertainty each month, and the increase in contributions resulted in a decrease in Willingness to pay Health Insurance contributions. Research purposes: The purpose of this study is to analyze the effect of income, knowledge, and disease susceptibility to the willingness to pay (WTP) of health insurance contributions to informal sector workers. Method: This cross-sectional research was conducted in Kudus Regency, Central Java in January-February 2020. Sampling used purposive sampling with a total of 200 informal sector workers who had not yet participated in BPJS Kesehatan. The dependent variable is a willingness to pay. The independent variables are income, knowledge, and disease susceptibility. Data collection using a questionnaire and data analysis with logistic regression. Result: Willingness To Pay health insurance contributions for informal sector workers increased in income ≥Rp 2,218,451 (b = 2.02; 95% CI = 1.01-3.55; p = 0.044), high knowledge (b = 4.64; 95% CI = 2.36-8.31; p <0.001), high disease susceptibility (b = 3.01; 95% CI = 0.26-5.75; p = 0.031). Conclusion: Income, knowledge, and disease vulnerability have a significant effect on the willingness to pay for health insurance contributions for informal sector workers.   Keywords: Universal Health Coverage; Willingness To Pay; Health Insurance; informal sector workers.

scholarly journals Optimal Insurance under Maxmin Expected Utility

2020 ◽  
Author(s):  
Corina Birghila ◽  
Tim J. Boonen ◽  
Mario Ghossoub
Keyword(s):  
Expected Utility ◽  
Maxmin Expected Utility ◽  
Optimal Insurance

Demystifying the environmental Kuznets curve: turning a black box into a policy tool

1997 ◽  
Vol 2 (4) ◽  
pp. 465-484 ◽  
Author(s):  
THEODORE PANAYOTOU
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Reduced Form ◽  
Kuznets Curve ◽  
Income Levels ◽  
Policy Tool ◽  
Explicit Consideration ◽  
Speed Up ◽  
Form Approach

The reduced-form approach to the income–environment relationship has been a useful first step towards answering the question of how economic growth affects the environment. However, without an explicit consideration of the underlying determinants of environmental quality, the scope for policy intervention is unduly circumscribed. In this paper a modest attempt is made to incorporate explicit policy considerations into the income–environment relationship and to explore its determinants as a step towards a better understanding of this relationship and its potential as a policy tool. The role of the rate of economic growth and population density is also explored. A main finding is that at least in the case of ambient SO2 levels, policies and institutions can significantly reduce environmental degradation at low income levels and speed up improvements at higher income levels, thereby flattening the EKC and reducing the environmental price of economic growth.

scholarly journals Measuring the end-of-life premium in cancer using individual ex ante willingness to pay

2017 ◽  
Vol 19 (6) ◽  
pp. 807-820 ◽  
Author(s):  
S. Olofsson ◽  
U.-G. Gerdtham ◽  
L. Hultkrantz ◽  
U. Persson
Keyword(s):  
Willingness To Pay ◽  
End Of Life ◽  
Ex Ante

scholarly journals Getting a foot on the sanitation ladder: user satisfaction and willingness to pay for improved public toilets in Accra, Ghana

2017 ◽  
Vol 7 (3) ◽  
pp. 528-534 ◽  
Author(s):  
Simon Mariwah ◽  
Kate Hampshire ◽  
Constance Owusu-Antwi
Keyword(s):  
Willingness To Pay ◽  
Low Income ◽  
User Satisfaction ◽  
Waiting Times ◽  
Running Water ◽  
Sanitation Services ◽  
Potential Market ◽  
Improved Sanitation ◽  
Sanitation Ladder ◽  
Public Toilets

Rapid urban growth in developing countries has led to an increase in unplanned, high-density settlements dependent on public toilets for sanitation, yet we know relatively little about users' perceptions and concerns about such facilities. This paper seeks to explore user satisfaction and willingness to pay for improved sanitation services in Accra. Utilising a questionnaire, data were gathered from 245 users of public toilets in two low-income communities of Accra. 80.8% of users expressed overall dissatisfaction with the public toilets, the main areas of concern being: long queues and waiting times, unpleasant smells, dirtiness, concerns about security and lack of running water and soap. The majority of the respondents said that they would be willing to pay higher fees for improved services. Operators should take note of this and explore the potential market for building and maintaining high-quality public toilet facilities as a means to ending open defecation and getting on the first step on the sanitation ladder.

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