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Information and subsidies: Complements or substitutes?

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  • Ashraf, Nava
  • Jack, B. Kelsey
  • Kamenica, Emir

Abstract

Does providing information about a product influence the impact of price subsidies on purchases? This question is particularly relevant for health products in developing countries where both informational campaigns and price subsidies are common policy instruments. We conduct a field experiment in Zambia and find that providing information about a new version of a product significantly increases the impact of price subsidies on take-up. Taken alone, the information manipulation has no significant impact on demand while the price subsidy substantially increases demand. However, the evaluation of either intervention in isolation fails to capture the significant complementarity between the two.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 88 (2013)
Issue (Month): C ()
Pages: 133-139

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Handle: RePEc:eee:jeborg:v:88:y:2013:i:c:p:133-139

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Web page: http://www.elsevier.com/locate/jebo

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Keywords: Subsidies; Information; Health;

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References

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Cited by:
  1. Greg Fischer & Dean Karlan & Margaret McConnell & Pia Raffler, 2014. "To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda," Working Papers 1041, Economic Growth Center, Yale University.
  2. Meredith, Jennifer & Robinson, Jonathan & Walker, Sarah & Wydick, Bruce, 2013. "Keeping the doctor away: Experimental evidence on investment in preventative health products," Journal of Development Economics, Elsevier, vol. 105(C), pages 196-210.
  3. Georgia S. Papoutsi & Rodolfo M. Nayga & Panagiotis Lazaridis & Andreas C. Drichoutis, 2013. "Nudging parental health behavior with and without children's pestering power: Fat tax, subsidy or both?," Working Papers 2013-5, Agricultural University of Athens, Department Of Agricultural Economics.
  4. Bejenariu, Simona & Mitrut, Andreea, 2014. "Bridging the Gap for Roma Women: The Effects of a Health Mediation Program on Roma Prenatal Care and Child Health," Working Papers in Economics 590, University of Gothenburg, Department of Economics.
  5. Greg Fischer & Dean Karlan & Margaret McConnell & Pia Raffler, 2014. "To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda," NBER Working Papers 20170, National Bureau of Economic Research, Inc.

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