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Bednets, Information and Malaria in Orissa

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Author Info

  • Brian Blackburn

    (Stanford University)

  • Aprajit Mahajan

    ()
    (Department of Economics, Stanford University)

  • Alessandro Tarozzi

    (Stanford University)

  • Joanne Yoong

    (Labor and Population Program)

Abstract

This paper studies the identification and estimation of a basic model of technology adoption using specifcally collected information on subjective beliefs and expectations to identify key model parameters. We discuss identifcation with both non-parametrically and parametrically specified utility as well as parametric and semi-parametric specifcations for unobserved heterogeneity. We propose parametric and semi-parametric estimation methods to recover underlying preferences and use the model to study the adoption of Insecticide Treated Nets (ITNs) among poor households in rural India. We carry out counterfactual exercises to examine the effects of price and belief changes on net ownership decisions. The results suggest that purchase decisions are relatively insensitive to changes from current prices and beliefs. The method proposed here should have applicability to other discrete choice settings with non-linear indices.

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Bibliographic Info

Paper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 08-025.

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Date of creation: Mar 2009
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Handle: RePEc:sip:dpaper:08-025

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Related research

Keywords: Malaria; Expectations; Bednets; Identi cation; Median Restrictions;

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References

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Cited by:
  1. Bhattacharya, Debopam & Dupas, Pascaline, 2012. "Inferring welfare maximizing treatment assignment under budget constraints," Journal of Econometrics, Elsevier, vol. 167(1), pages 168-196.
  2. Delavande, Adeline & Giné, Xavier & McKenzie, David, 2011. "Measuring subjective expectations in developing countries: A critical review and new evidence," Journal of Development Economics, Elsevier, vol. 94(2), pages 151-163, March.
  3. Eddie Dekel & Barton L. Lipman, 2009. "How (Not) to Do Decision Theory," Levine's Working Paper Archive 814577000000000339, David K. Levine.

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