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Do Free Goods Stick to Poor Households? Experimental Evidence on Insecticide Treated Bednets

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  • Hoffmann, Vivian
  • Barrett, Christopher B.
  • Just, David R.

Abstract

Summary If the market allocates goods to those willing and able to pay the most for them, efforts to target durable health goods such as insecticide-treated bednets (ITNs) to poor populations may prove ineffective, with the poor reselling donated goods to the non-poor who value them more highly. However, low market demand may be due to liquidity constraints rather than low valuation of nets. The endowment effect also militates against the resale of in-kind transfers. We quantify these two effects through a field experiment in Uganda. Our results indicate that very few nets will be resold by recipient households.

Suggested Citation

  • Hoffmann, Vivian & Barrett, Christopher B. & Just, David R., 2009. "Do Free Goods Stick to Poor Households? Experimental Evidence on Insecticide Treated Bednets," World Development, Elsevier, vol. 37(3), pages 607-617, March.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:3:p:607-617
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    Cited by:

    1. Y Mehmet Kutluay & Richard S. J. Tol, 2015. "Valuing malaria morbidity: Results from a global metaanalysis," Working Paper Series 7615, Department of Economics, University of Sussex.
    2. Vivian Hoffmann, 2009. "Intrahousehold Allocation of Free and Purchased Mosquito Nets," American Economic Review, American Economic Association, pages 236-241.
    3. Fischer, Gregory & Berry, James & Guiteras, Raymond, 2012. "Eliciting and utilizing willingness to pay: evidence from field trials in Northern Ghana," LSE Research Online Documents on Economics 47913, London School of Economics and Political Science, LSE Library.
    4. Lang, Corey & Barrett, Christopher B. & Naschold, Felix, 2013. "Targeting Maps: An Asset-Based Approach to Geographic Targeting," World Development, Elsevier, pages 232-244.
    5. Garg, Teevrat, 2014. "Public Health Effects of Natural Resource Degradation: Evidence from Indonesia," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169822, Agricultural and Applied Economics Association.
    6. Singhal Saurabh & Pan Yao, 2015. "Income and Malaria: Evidence from an agricultural intervention in Uganda," WIDER Working Paper Series 092, World Institute for Development Economic Research (UNU-WIDER).
    7. Katherine P. Adams & Travis J. Lybbert & Stephen A. Vosti & Emmanuel Ayifah, 2016. "Using an economic experiment to estimate willingness-to-pay for a new maternal nutrient supplement in Ghana," Agricultural Economics, International Association of Agricultural Economists, vol. 47(5), pages 581-595, September.
    8. Thomas de Hoop & Ricardo Fort & Luuk van Kempen, 2009. "Do people invest in local public goods with long-term benefits? Experimental evidence from a shanty town in peru," Artefactual Field Experiments 00070, The Field Experiments Website.
    9. Nik Stoop & Marijke Verpoorten & Koen Deconinck, 2017. "Voodoo, Vaccines and Bed Nets," LICOS Discussion Papers 39417, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    10. Banerji, Abhijit & Birol, Ekin & Karandikar, Bhushana & Rampal, Jeevant, 2016. "Information, branding, certification, and consumer willingness to pay for high-iron pearl millet: Evidence from experimental auctions in Maharashtra, India," Food Policy, Elsevier, vol. 62(C), pages 133-141.
    11. 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.

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