ABSTRACT Out-of-pocket health payments are payments made by households at a point of use of health services. Researchers often use single-level logistic models to examine factors associated with impoverishment due to health payments. However, single-level models fail to account for neighborhood correlation which exist in complex survey data. The paper compares spatial multilevel to standard multilevel and single-level logistic models in terms of performance of model estimates and fit. It uses data from Malawi integrated household survey collected from 12,447 households and simulated data. Mean squared error and percentage bias were used to compare performance. Deviance Information Criterion was used to assess model fit. The results show that spatial multilevel and standard multilevel models provide similar fixed parameter estimates when both within and between neighborhood correlation exist in data while single-level model provides biased estimates and poor fit. Households with at least one chronically ill member, at least one hospitalized member or located in rural areas were significantly more likely to face impoverishment. Researchers using complex survey data should be cautious as both within and between neighborhood correlation may exist in data and failure to account for spatial correlation may lead to biased estimates consequently wrong conclusions.
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