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Short-Run Subsidies and Long-Run Adoption of New Health Products: Evidence from a Field Experiment

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  • Pascaline Dupas

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Abstract

This paper is about a field experiment which was designed to estimate the relative importance of competing effects of targeted subsidies for health products. It has been found out that, for a health product with high private returns (an anti malarial bednet), positive experience and social leanings eliminate.

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:2498.

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Date of creation: May 2010
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Handle: RePEc:ess:wpaper:id:2498

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Related research

Keywords: technologyadoption; subsidies; social learning; anchoring;

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References

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  1. Jessica Cohen & Pascaline Dupas, 2010. "Free Distribution or Cost-Sharing? Evidence from a Randomized Malaria Prevention Experiment," The Quarterly Journal of Economics, MIT Press, vol. 125(1), pages 1-45, February.
  2. Kyle Bagwell & Michael Riordan, 1988. "High and Declining Prices Signal Product Quality," Discussion Papers 808, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  3. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
  4. Oriana Bandiera & Imran Rasul, 2002. "Social Networks and Technology Adoption in Northern Mozambique," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 35, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  5. Dan Ariely & George Loewenstein & Drazen Prelec, 2003. ""Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 73-105, February.
  6. Botond Koszegi & Matthew Rabin, 2004. "A Model of Reference-Dependent Preferences," Method and Hist of Econ Thought 0407001, EconWPA.
  7. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
  8. Giuseppe Moscarini, 2005. "Job Matching and the Wage Distribution," Econometrica, Econometric Society, vol. 73(2), pages 481-516, 03.
  9. Dirk Bergemann & Juuso Valimaki, 1996. "Experimentation in Markets," Discussion Papers 1220, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  10. Esther Duflo & Michael Kremer & Jonathan Robinson, 2009. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," NBER Working Papers 15131, National Bureau of Economic Research, Inc.
  11. Heffetz, Ori & Shayo, Moses, 2009. "How Large Are Non-Budget-Constraint Effects Of Prices On Demand?," Working Papers 53882, American Association of Wine Economists.
  12. Emily Oster & Rebecca Thornton, 2009. "Determinants of Technology Adoption: Private Value and Peer Effects in Menstrual Cup Take-Up," NBER Working Papers 14828, National Bureau of Economic Research, Inc.
  13. Uri Simonsohn & George Loewenstein, 2006. "Mistake #37: The Effect of Previously Encountered Prices on Current Housing Demand," Economic Journal, Royal Economic Society, vol. 116(508), pages 175-199, 01.
  14. 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.
  15. Giuseppe Moscarini & Lones Smith, 2001. "The Optimal Level of Experimentation," Econometrica, Econometric Society, vol. 69(6), pages 1629-1644, November.
  16. Munshi, Kaivan & Myaux, Jacques, 2006. "Social norms and the fertility transition," Journal of Development Economics, Elsevier, vol. 80(1), pages 1-38, June.
  17. Dirk Bergemann & Juuso Välimäki, 2006. "Dynamic Pricing of New Experience Goods," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 713-743, August.
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Citations

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Cited by:
  1. Pascaline Dupas & Jonathan Robinson, 2011. "Why Don't the Poor Save More? Evidence from Health Savings Experiments," NBER Working Papers 17255, National Bureau of Economic Research, Inc.
  2. 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.
  3. Rema Hanna & Esther Duflo & Michael Greenstone, 2012. "Up in Smoke: The Influence of Household Behavior on the Long-Run Impact of Improved Cooking Stoves," NBER Working Papers 18033, National Bureau of Economic Research, Inc.
  4. Bhattacharya, Debopam & Dupas, Pascaline, 2012. "Inferring welfare maximizing treatment assignment under budget constraints," Journal of Econometrics, Elsevier, vol. 167(1), pages 168-196.
  5. Whittington, Dale & Jeuland, Marc & Barker, Kate & Yuen, Yvonne, 2012. "Setting Priorities, Targeting Subsidies among Water, Sanitation, and Preventive Health Interventions in Developing Countries," World Development, Elsevier, vol. 40(8), pages 1546-1568.
  6. Mark R. Rosenzweig, 2010. "Microeconomic Approaches to Development: Schooling, Learning, and Growth," Working Papers 985, Economic Growth Center, Yale University.
  7. Guofang Huang & Ahmed Khwaja & K. Sudhir, 2012. "Short Run Needs and Long Term Goals: A Dynamic Model of Thirst Management," Cowles Foundation Discussion Papers 1856, Cowles Foundation for Research in Economics, Yale University.
  8. Devoto, Florencia & Duflo, Esther & Dupas, Pascaline & Parienté, William & Pons, Vincent, 2011. "Happiness on Tap: Piped Water Adoption in Urban Morocco," CEPR Discussion Papers 8326, C.E.P.R. Discussion Papers.
  9. Bryan, Gharad & Chowdhury, Shyamal & Mobarak, Ahmed Mushfiq, 2012. "Seasonal Migration and Risk Aversion," CEPR Discussion Papers 8739, C.E.P.R. Discussion Papers.
  10. Andrew D. Foster & Mark R. Rosenzweig, 2010. "Microeconomics of Technology Adoption," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 395-424, 09.
  11. Grant Miller & A. Mushfiq Mobarak, 2013. "Gender Differences in Preferences, Intra-Household Externalities, and Low Demand for Improved Cookstoves," NBER Working Papers 18964, National Bureau of Economic Research, Inc.
  12. Lybbert, Travis J. & Magnan, Nicholas & Spielman, David J. & Bhargava, Anil K. & Gulati, Kajal, 2013. "Targeting technology to reduce poverty and conserve resources: Experimental delivery of laser land leveling to farmers in Uttar Pradesh, India:," IFPRI discussion papers 1274, International Food Policy Research Institute (IFPRI).

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