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Do Free Goods Stick to Poor Households? Experimental Evidence on Insecticide Treated Bednets

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  • Hoffmann, Vivian
  • Barrett, Christopher B.
  • Just, David R.

Abstract

Summary If the market allocates goods to those willing and able to pay the most for them, efforts to target durable health goods such as insecticide-treated bednets (ITNs) to poor populations may prove ineffective, with the poor reselling donated goods to the non-poor who value them more highly. However, low market demand may be due to liquidity constraints rather than low valuation of nets. The endowment effect also militates against the resale of in-kind transfers. We quantify these two effects through a field experiment in Uganda. Our results indicate that very few nets will be resold by recipient households.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 3 (March)
Pages: 607-617

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:3:p:607-617

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

Related research

Keywords: malaria bednets willingness to pay (WTP) endowment effect liquidity constraints field experiment;

References

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Cited by:
  1. Adams, Katherine P. & Vosti, Stephen A. & Lybbert, Travis J. & Ayifah, Emmanuel, 2011. "Integrating Economic Analysis with a Randomized Controlled Trial: Willingness-to-Pay for a New Maternal Nutrient Supplement," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103793, Agricultural and Applied Economics Association.
  2. Thomas de Hoop & Luuk van Kempen & Ricardo Fort, 2009. "Do people invest in local public goods with long-term benefits? Experimental evidence from a shanty town in peru," Artefactual Field Experiments 00070, The Field Experiments Website.
  3. Vivian Hoffmann, 2009. "Intrahousehold Allocation of Free and Purchased Mosquito Nets," American Economic Review, American Economic Association, vol. 99(2), pages 236-41, May.

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