Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2019-11-17
Number: 19-078/V
Author-Name: Aurélien Baillon
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Joseph Capuno
Author-Workplace-Name: University of the Philippines Diliman
Author-Name: Owen O'Donnell
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Carlos Tan
Author-Workplace-Name: University of the Philippines Diliman
Author-Name: Kim van Wilgenburg
Author-Workplace-Name: Erasmus University Rotterdam
Title: Persistent Effects of Temporary Incentives: Evidence from a Nationwide Health Insurance Experiment
Abstract: Temporary incentives are offered in anticipation of persistent effects, but these are seldom estimated. We use a nationwide randomized experiment in the Philippines to estimate effects three years after the withdrawal of two incentives for health insurance. A premium subsidy had a persistent effect on enrollment that is more than four fifths of the immediate effect. Application assistance had a much larger immediate impact, but less than a fifth of this effect persisted. The subsidy persuaded those with higher initial willingness to pay to enroll and keep enrolling, while application assistance achieved a larger immediate effect by drawing in those who valued insurance less and were less likely to re-enroll.
Classification-JEL: I13, C93
Keywords: incentives, persistence, health insurance, subsidy, randomized experiment
File-URL: https://papers.tinbergen.nl/19078.pdf
File-Format: application/pdf
File-Size: 1127195 bytes
Handle: RePEc:tin:wpaper:20190078