Payment Attitudes to Public Services in the Municipalities of Bangladesh
The paper investigates the factors which inﬂuence households' willingness to pay for public services provided by municipal councils in Bangladesh. The analysis in the paper is based on a survey of all municipalities, with a sample size of over six thousand households. The survey data was complemented with administrative data obtained from oﬃces of these local bodies. A multinomial logit model was used to investigate the factors (such as the rates paid by user households for public services, eg, water supply, etc. and socio-demographic characteristics of households, such as education, age etc.) which are signiﬁcant in changing the probability of households' willingness to pay. The analysis was conducted with three diﬀerent categories of households in the model, which diﬀer in their attitudes to paying for the public services they use. The empirical results provide evidence that better public services signiﬁcantly inﬂuence households' attitudes to paying more for the services, indicating that cost recovery-type of pricing policies may be used in the municipal areas, contrary to populist concerns. Thus, the municipalities may well be gradually 'weaned away' from dependence on grants from the government and instead, mobilize more resources locally to ﬁnance development.
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