Do Public Health Interventions Crowd Out Private Health Investments? Malaria Control Policies in Eritrea
AbstractIt is often argued that engaging in indoor residual spraying (IRS) in areas with high coverage of mosquito bed nets may discourage net ownership and use. This is just a case of a public program inducing perverse incentives. We analyze new data from a randomized control trial conducted in Eritrea which surprisingly shows the opposite: IRS encouraged net acquisition and use. Our evidence points to the role of imperfect information. The introduction of IRS may have made the problem of malaria more salient, leading to a change in beliefs about its importance and to an increase in private health investments.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6560.
Length: 116 pages
Date of creation: May 2012
Date of revision:
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Other versions of this item:
- Carneiro, Pedro & Ghebremeskel, Tewolde & Keating, Joseph & Locatelli, Andrea, 2012. "Do Public Health Interventions Crowd Out Private Health Investments? Malaria Control Policies in Eritrea," CEPR Discussion Papers 8976, C.E.P.R. Discussion Papers.
- Pedro Carneiro & Andrea Locatelli & Tewolde Ghebremeskel & Joseph Keating, 2012. "Do public health interventions crowd out private health investments? Malaria control policies in Eritrea," CeMMAP working papers CWP12/12, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
- I10 - Health, Education, and Welfare - - Health - - - General
- I12 - Health, Education, and Welfare - - Health - - - Health Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-05 (All new papers)
- NEP-CTA-2012-06-05 (Contract Theory & Applications)
- NEP-HEA-2012-06-05 (Health Economics)
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