Luchini

Publications

Demand assessment and price-elasticity estimation of quality-improved primary health care in palestine: a contribution from the contingent valuation methodJournal articleAwad Mataria, Stéphane Luchini, Yousef Daoud et Jean-Paul Moatti, Health Economics, Volume 16, Issue 10, pp. 1051-1068, 2007

This paper proposes a new methodology to assess demand and price-elasticity for health care, based on patients' stated willingness to pay (WTP) values for certain aspects of health care quality improvements. A conceptual analysis of how respondents consider contingent valuation (CV) questions allowed us to specify a probability density function of stated WTP values, and consequently, to model a demand function for quality-improved health care, using a parametric survival approach. The model was empirically estimated using a CV study intended to assess patients' values for improving the quality of primary health care (PHC) services in Palestine. A random sample of 499 individuals was interviewed following medical consultation in four PHC centers. Quality was assessed using a multi-attribute approach; and respondents valued seven specific quality improvements using a decomposed valuation scenario and a payment card elicitation technique. Our results suggest an inelastic demand at low user fees levels, and when the price-increase is accompanied with substantial quality-improvements. Nevertheless, demand becomes more and more elastic if user fees continue to rise. On the other hand, patients' reactions to price-increase turn out to depend on their level of income. Our results can be used to design successful health care financing strategies that include a consideration of patients' preferences and financial capacities. Copyright © 2007 John Wiley & Sons, Ltd.

AJAE Appendix: Modeling Starting Point Bias as Unobserved Heterogeneity in Contingent Valuation Surveys: An Application to Air PollutionJournal articleFrédéric Aprahamian, Olivier Chanel et Stéphane Luchini, American Journal of Agricultural Economics Appendices, Volume 89, Issue 2, pp. 533-547, 2007

The material contained herein is supplementary to the article named in the title and published in the American Journal of Agricultural Economics, May 2007, Volume 89, Issue 2.

Progressivity and horizontal equity in health care finance and delivery: what about Africa?Journal articleBoubou Cissé, Stéphane Luchini et Jean Paul Moatti, Health Policy, Volume 80, Issue 1, pp. 51-68, 2007

This paper applies concentration curves and indices, that have been previously used to analyze progressivity in health care finance and horizontal equity in health care delivery in developed countries, to a 1998-1999 household survey about health care expenditures and utilization carried out in four francophone West African capitals (Abidjan, Bamako, Conakry and Dakar). The paper also uses statistical inference for testing stochastic dominance relationship between curves, a technique already applied in the literature about equity in taxation, as the criterion for making rigorous inequality comparisons. In all four capitals, the results strongly suggest a regressive pattern of payments for health care, with lower income groups bearing an higher burden of health expenditures as a proportion of their income than do the higher income segments of the population. As soon as dominance between concentrations curves is statistically tested, results appear less conclusive, notably for the groups of population affected by severe morbidity, on the issue of horizontal inequity in health care delivery, which requires that persons with similar medical need be treated equally. Some recommendations are made for the use of equity measurements in access to care for future evaluations of the impact of health care reforms in Africa.

Modeling Starting Point Bias as Unobserved Heterogeneity in Contingent Valuation Surveys: An Application to Air PollutionJournal articleOlivier Chanel et Stéphane Luchini, American Journal of Agricultural Economics, Volume 89, Issue 2, pp. 533-547, 2007

Up to now, the starting point bias has generally been considered to be a homogeneous phenomenon. In this article, we treat anchoring as an unobserved heterogeneous phenomenon. Our contribution is twofold. First, we show analytically and by way of simulations that assuming homogeneous anchoring can be hazardous and lead to misspecifications. Second, we propose an econometric model that starts with a dichotomous question and then uses an open-ended question. We finally apply our model to a contingent valuation survey on air quality. Our results suggest that how anchoring is modeled in empirical studies deserves more attention. Copyright 2007, Oxford University Press.

Individual Responsiveness to Information in CV Surveys : Commitment MattersJournal articleOlivier Chanel, Susan Cleary et Stéphane Luchini, Revue d'économie politique, Volume 117, Issue 5, pp. 761-779, 2007

This paper enquires into the responsiveness of individuals to information in Contingent Valuation (CV). The impact of information is assessed using a sequential procedure in which individuals are successively presented with different levels of information. Two different types of information have been provided: scientific information about the good and information about the willingness to pay (WTP) values of the other respondents. Responsiveness to information is studied using an innovative CV survey where two groups of over 120 volunteers simultaneously provided their WTP (field experiment) and a standard telephone survey of over 240 respondents. Our results show (1) a higher level of responsiveness to scientific information than to information about the WTP values of other respondents and (2) a higher level of responsiveness in the field experiment than in the telephone survey. We discuss our findings using the theory of commitment borrowed from social psychology and explore the extent to which commitment could be a necessary requirement in the practical application of the CV method.

Heterogeneous anchoring in dichotomous choice valuation frameworkJournal articleEmmanuel Flachaire, Guillaume Hollard et Stéphane Luchini, Recherches économiques de Louvain, Volume 73, Issue 4, pp. 369-385, 2007

This article addresses the important issue of anchoring in contingent valuation surveys that use the double-bounded elicitation format. Anchoring occurs when responses to the follow-up dichotomous choice valuation question are influenced by the bid presented in the initial dichotomous choice question. Specifically, we adapt a theory from psychology to characterize respondents as those who are likely to anchor and those who are not. Using a model developed by Herriges and Shogren (1996), our method appears successful in discriminating between those who anchor and those who did not. An important result is that when controlling for anchoring ? and allowing the degree of anchoring to differ between respondent groups ? the efficiency of the double-bounded welfare estimate is greater than for the initial dichotomous choice question. This contrasts with earlier research that finds that the potential efficiency gain from the double-bounded questions is lost when anchoring is controlled for and that we are better off not asking follow-up questions. JEL Classification: Q26, C81, D71.

Does public opinion influence willingness-to-pay? Evidence from the fieldJournal articleOlivier Chanel, Susan Cleary et Stéphane Luchini, Applied Economics Letters, Volume 13, Issue 13, pp. 821-824, 2006

Contingent valuation (CV) surveys have been criticized for assuming that respondents have well-defined preferences. Using an innovative field experiment dealing with a privatized public good, it is shown that respondents are not influenced by public opinion but are positively responsive to scientific information.

Is There Personal Identity in Economics?Journal articleStéphane Luchini et Miriam Teschl, Revue Éthique et Économique / Ethics and Economics, Volume 3, Issue 1, 2005

John B. Davis explores the question of what the economic individual is. He bases his considerations of orthodox economics on the assumption that these theories implicitly rely on a conception of the individual that has its origin in Locke’s idea of the self as subjective inwardness. Economic history then is the attempt to deal with Locke’s inherent problems that this view involved. If neoclassical economics still has aspects of human psychology, mainstream economics dropped the subjective concept of the individual out of their considerations. However, Davis demonstrates that even the neoclassical concept of the individual fails to pass the existence test of individual identity. The latter is an idea developed in analogy to philosophers’ concern about personal identity and examines if the individual can be distinguished among different individuals and if he or she can be reidentified as the selfsame individual through time. The failure of the theory of the individual in orthodox economics led Davis to develop a concept of a socially embedded individual in accordance with heterodox accounts of economics. He submits this conception to the same test of individual identity. It appears that the socially embedded individual can be said to hold an identity in specific circumstances.

The impact of information on non-health attributes on willingness to pay for multiple health care programmesJournal articleChristel Protière, Cam Donaldson, Stéphane Luchini, Jean Paul Moatti et Phil Shackley, Social Science & Medicine, Volume 58, Issue 7, pp. 1257-1269, 2004

Despite the acceptance that health gain is the most important attribute of health care, other aspects of health care may affect utility. The aim of this paper is to report an experiment to test the impact of providing different levels of information in the context of the EuroWill study, a joint contingent valuation (CV) of multiple health programmes. Three hundred and three respondents were simultaneously asked for their willingness-to-pay (WTP) for three health care programmes: more heart operations, a new breast cancer treatment and a helicopter ambulance service. To test for the impact of variation in information, three versions of one of the programmes (heart) were provided. Results show that WTP for all three programmes tended to be significantly higher for respondents who were provided additional positive information about the heart programme. Our results show that CV of health care programmes, which only take into account medical outcomes, may lead to the value of such programmes not being adequately estimated, and that the impact of information may even be more decisive in the context of joint evaluation of multiple, rather than single, programmes.

Valorisation économique des effets de la pollution atmosphériqueJournal articleOlivier Chanel, Stéphane Luchini, Elsa Faugère, Ghislain Geniaux, Robert Kast et Pascale Scapecchi, Revue Économique, Volume 55, Issue 1, pp. 65-92, 2004

This article introduces the main results of a contextual contingent valuation survey (i.e. specific to the underlying risk) dealing with a change in air pollution exposition. Individual willingness-to-pay for both health (morbidity and mortality) and non-health effects are elicited. The use of an original hypothetical scenario that involves 1 273 inhabitants of the Bouches-du-Rhône and a convenient econometric model (Box-Cox model with censoring) lead to an overall predicted monthly value of 68,6 euros per household for an half decrease of the number of polluted days. A model of expected life-time resource allocation allows us to evaluate, for the first time, a value of a prevented fatality specific to the air pollution risk : 0,8 million Euros.Classification JEL : C1, I1, Q25, D12