Compensating the Poor out of Traditional Healing in Cameroon: A Nested Logit Analysis

The current paper sought to (i) identify the determinants of the choice of health care providers in Cameroon, (ii) determine the compensation to the poor to get them away from traditional/self healing, and (iii) propose alternative health care policies compatible with concerns for poverty alleviation. The core is a nested Logit model, accounting for the poor’s decision in terms of a Spline function of consumption. Overall, the majority of the determinants had the expected sign with a significant effect. The compensation to the poor is at least 46.20% of the lower poverty line, while the intermediate group receives a compensation of at least 14.47% of the upper poverty line.