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What is the price of prevention? New evidence from a field experiment

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  • Okeke, Edward N.
  • Adepiti, Clement A.
  • Ajenifuja, Kayode O.
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    Abstract

    How does increasing access to treatment affect the demand for preventive testing? In this paper we present results from a field experiment in Nigeria in which we offered cervical cancer screening to women at randomly chosen prices. To test our hypothesis, we also offered women a lottery where the payoff was a subsidy towards the cost of cervical cancer treatment (conditional upon a diagnosis of cervical cancer). We find that women randomly selected to receive the conditional cancer treatment subsidy were about 4 percentage points more likely to take up screening than those in the control group. We also show that reducing the price of screening by 10 cents increased take-up by about 1 percentage point. These results offer compelling evidence that the optimal set of subsidies to increase take-up of preventive testing in developing countries, must include subsidies towards treatment costs (in addition to price subsidies).

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Health Economics.

    Volume (Year): 32 (2013)
    Issue (Month): 1 ()
    Pages: 207-218

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    Handle: RePEc:eee:jhecon:v:32:y:2013:i:1:p:207-218

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    Web page: http://www.elsevier.com/locate/inca/505560

    Related research

    Keywords: Randomized experiment; Prices; Demand; Prevention; Testing; Subsidies;

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    Cited by:
    1. Iajya, Victor & Lacetera, Nicola & Macis, Mario & Slonim, Robert, 2013. "The effects of information, social and financial incentives on voluntary undirected blood donations: Evidence from a field experiment in Argentina," Social Science & Medicine, Elsevier, vol. 98(C), pages 214-223.
    2. Susan Godlonton & Rebecca L. Thornton, 2013. "Learning from Others' HIV Testing: Updating Beliefs and Responding to Risk," American Economic Review, American Economic Association, vol. 103(3), pages 439-44, May.

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