Social Preferences for Public Provision of Services: Experimental Evidence from Latin America

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Authors: Hernan Daniel Bejarano, Matias Busso, Juan Francisco Santos
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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