Social Preferences for Public Provision of Services: Experimental Evidence from Latin America
Abstract
We study how individuals in six Latin American countries value public versus private provision of education and healthcare using a survey experiment. Respondents were randomly assigned to vignettes that vary income, service quality, and provider type. Perceived quality is the main driver of choices: the probability of selecting a private provider roughly doubles when public quality falls from 80 to 20 percent, while income has a smaller effect. Higher institutional trust lowers the likelihood of switching to private providers but does not affect willingness to pay once individuals choose private provision. The multi-country design supports external validity and reveals similar behavioral responses across contexts. The results show that improving service quality and rebuilding institutional trust can reduce reliance on private provision.
Fields of Study & Subjects
Experimental Behavioral Economics Studies
Economic and Environmental Valuation
Healthcare Systems and Reforms
Publication details
- Publication date
- 14 January 2026