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Healthcare Choices, Information and Health Outcomes

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  • Achyuta Adhvaryu

    ()
    (MEPH Health Policy and Administration, Yale University)

  • Anant Nyshadham

    ()
    (Department of Economics, Yale University)

Abstract

Self-selection into healthcare options on the basis of severity likely biases estimates of the effects of healthcare choice on health outcomes. Using an instrumental variables strategy which exploits exogenous variation in the cost of formal-sector care, we show that using such care to treat acute sickness decreases the incidence of fever and malaria in young children in Tanzania. Compared to the instrumental variables estimates, ordinary least squares estimates significantly understate the effects of formal-sector healthcare use on health outcomes. Improved information and more timely treatment, rather than greater access to medicines, seem to be the primary mechanisms for this effect.

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Bibliographic Info

Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 994.

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Length: 60 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:egc:wpaper:994

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Keywords: healthcare; information; child health; Tanzania;

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  15. Achyuta Adhvaryu & Anant Nyshadham, 2011. "Labor Supply, Schooling and the Returns to Healthcare in Tanzania," Working Papers 995, Economic Growth Center, Yale University.
  16. Bjorklund, Anders & Moffitt, Robert, 1987. "The Estimation of Wage Gains and Welfare Gains in Self-selection," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 42-49, February.
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Cited by:
  1. Achyuta Adhvaryu & Anant Nyshadham, 2011. "Labor Complementarities and Health in the Agricultural Household," Working Papers 996, Economic Growth Center, Yale University.
  2. Achyuta Adhvaryu & Anant Nyshadham, 2011. "Labor Supply, Schooling and the Returns to Healthcare in Tanzania," Working Papers 995, Economic Growth Center, Yale University.

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