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Learning, Misallocation, and Technology Adoption: Evidence from New Malaria Therapy in Tanzania

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  • Adhvaryu, Achyuta

Abstract

I show that malaria misdiagnosis, common in resource-poor settings, decreases the expected effectiveness of an important new therapy–since only a fraction of treated individuals have malaria–and reduces the rate of learning via increased noise. Using pilot program data from Tanzania, I exploit variation in the location and timing of survey enumeration to construct reference groups composed of randomly chosen, geographically and temporally proximate acutely ill individuals. I show that learning is stronger and adoption rates are higher in villages with more misdiagnosis. Subsidizing diagnostic tools or improving initial targeting of new technologies may thus accelerate uptake through learning.

Suggested Citation

  • Adhvaryu, Achyuta, 2011. "Learning, Misallocation, and Technology Adoption: Evidence from New Malaria Therapy in Tanzania," Center Discussion Papers 115712, Yale University, Economic Growth Center.
    • Handle: RePEc:ags:yaleeg:115712
    DOI: 10.22004/ag.econ.115712
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    References listed on IDEAS

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    1. Pascaline Dupas, 2014. "Short‐Run Subsidies and Long‐Run Adoption of New Health Products: Evidence From a Field Experiment," Econometrica, Econometric Society, vol. 82(1), pages 197-228, January.
    2. Hoyt Bleakley, 2010. "Malaria Eradication in the Americas: A Retrospective Analysis of Childhood Exposure," American Economic Journal: Applied Economics, American Economic Association, vol. 2(2), pages 1-45, April.
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    4. Munshi, Kaivan, 2004. "Social learning in a heterogeneous population: technology diffusion in the Indian Green Revolution," Journal of Development Economics, Elsevier, vol. 73(1), pages 185-213, February.
    5. Adrienne M. Lucas, 2010. "Malaria Eradication and Educational Attainment: Evidence from Paraguay and Sri Lanka," American Economic Journal: Applied Economics, American Economic Association, vol. 2(2), pages 46-71, April.
    6. Hong, Sok Chul, 2007. "The Burden of Early Exposure to Malaria in the United States, 1850–1860: Malnutrition and Immune Disorders," The Journal of Economic History, Cambridge University Press, vol. 67(4), pages 1001-1035, December.
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    Cited by:

    1. Jessica Cohen & Pascaline Dupas & Simone Schaner, 2015. "Price Subsidies, Diagnostic Tests, and Targeting of Malaria Treatment: Evidence from a Randomized Controlled Trial," American Economic Review, American Economic Association, vol. 105(2), pages 609-645, February.

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