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Health Expenditure Financing as Incentive for Participation in ROSCAs

Abstract

Rotating Savings and Credit Associations (ROSCAs) are a common informal saving method recognized as a social protection system that can be used to deal with the monetary consequences of different types of economic shocks. This paper tests the hypothesis that current participation in ROSCAs will be encouraged when funds saved during previous membership in such associations were useful for financing extraordinary as well as unexpected expenses related to health needs. The probit model estimation supports this hypothesis and also suggests that savings from ROSCAs used for preventive health services encourage further participation.

Autores:  Raccanello, Kristiano; Anand, Jayant.
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