Stated preferences for public provision of services: Experimental evidence from Latin America

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. Reported service quality is the main driver of choices: the probability of selecting a private provider roughly doubles when reported quality of the public option 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. • Perceived service quality is the main driver of private take-up in education and healthcare. • Income effects on private demand are smaller and less systematic than quality effects. • Higher institutional trust reduces exit from public services but not willingness to pay.