Abstract
BackgroundA common method used to examine the relationship between internal preferences and caring externalities is willingness to pay (WTP) approach. We aimed to estimate WTP for health status with different severity level and identify determinant factors on WTP.MethodsFor determining main factors in WTP, a cross-sectional study was conducted in Shiraz in the southeast of Iran, in March to April 2015. The open-ended method was used to estimate monthly WTP in private and altruistic section. Multivariate regression analyses using ordinary least squares were applied to examine the effect of Scio–demographic factors on WTP using SPSS software 21.ResultsParticipants were willing to pay an average amount of $ 295 in health status 1 and an average amount of $ 596 in health status 6 (worst status) for internal preferences. Altruistic WTP for health status 1 was $ 294 and participants were willing to pay an average amount of $ 416 in health status 6. Multiple regression analysis identified monthly income as the key determinant of WTP for internal preferences and caring externalities (P < 0.01). With an increase of 1% in income, private WTP increase 1.38% in health status 1.ConclusionsThe finding indicates that the mean of WTP increases at severe health status; therefore, health policy maker should allocate resources toward severe health status.
Highlights
A common method used to examine the relationship between internal preferences and caring externalities is willingness to pay (WTP) approach
We found that a large proportion of participants had willing to pay for one’s own and for others’ hypothetical health improvement
Amount of private WTP and altruistic WTP increases with worsening health status; in all of health status the value of private WTP was higher than value of altruistic WTP and the difference becomes further in the severity health status
Summary
A common method used to examine the relationship between internal preferences and caring externalities is willingness to pay (WTP) approach. We aimed to estimate WTP for health status with different severity level and identify determinant factors on WTP. Many economists believe that healthcare is different in ways that generate market failure, it is important for formulating public policy in the health sector [1,2,3]. In the economic evaluation are existed some procedures for measuring of caring externalities that one approach is altruistic willingness to pay (WTP). Various studies have been estimated WTP with different methods for health services. Basu (2013) applied contingent valuation approach to estimate willingness to pay for prevent Alzheimer’s disease and demonstrated the mean of WTP is $155 per month [11]
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