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Keeping the doctor away: Experimental evidence on investment in preventative health products

  • Meredith, Jennifer
  • Robinson, Jonathan
  • Walker, Sarah
  • Wydick, Bruce

Household investment in preventative health products is low in developing countries even though benefits from these products are very high. What interventions most effectively stimulate demand? In this paper, we experimentally estimate demand curves for health products in Kenya, Guatemala, India, and Uganda and test whether (1) information about health risk, (2) cash liquidity, (3) peer effects, and (4) intra-household differences in preferences affect demand. We find households to be highly sensitive to price and that both liquidity and targeting women increase demand. We find no effect of providing information, although genuine learning occurred, and we find no evidence of peer effects, although subjects discussed the product purchase decision extensively.

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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 105 (2013)
Issue (Month): C ()
Pages: 196-210

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Handle: RePEc:eee:deveco:v:105:y:2013:i:c:p:196-210
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  1. Daniel Ludwinski & Kent Moriarty & Bruce Wydick, 2011. "Environmental and health impacts from the introduction of improved wood stoves: evidence from a field experiment in Guatemala," Environment, Development and Sustainability, Springer, vol. 13(4), pages 657-676, August.
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