The effect of economic factors on contraceptive choice in Jamaica and Thailand: a comparison of mixed multinomial logit results

ABSTRACT

In this study the sensitivity of specific potential users and user groups to the prices charged for contraceptives was investigated. The results of the author's estimations explaining the choice to use priced contraceptive sources when free sources are available, for those who choose to purchase methods, are much hypothesized. In both Jamaica and Thailand, factors other than prices tend to dominate in determining whether a woman or her partner will purchase contraceptives, given free availability. In separate analyses for Jamaica and Thailand, the results explaining the choice of a specific method for those who choose to purchase contraceptives are consistent with expectations based on economic theory. Money prices and time costs are found to be negatively related to the choice of contraceptive method, but for several of the priced contraceptives, the effects of money prices are seen to be small in magnitude. The policy implications for these results are large and obvious. They suggest that decreases in subsidization of the money price of low elasticity contraceptives (the pill, IUD, sterilization) will not significantly alter the pattern of choice of contraceptive methods. Other methods, including condoms in both Jamaica and Thailand and injections in Jamaica, are found to be relatively sensitive to money price, and the results suggest that price increases would substantially decrease their use. (AU)