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Income and Health in Tanzania. An Instrumental Variable Approach

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  • Fichera, Eleonora
  • Savage, David

Abstract

There is a substantial debate over the direction of the causal relation between income and health. This is important for our understanding of the health production process and for the policy debate over improving healthcare. We instrument income with rainfall measurements by matching satellite information on timing and positioning of 21 rainfall stations to longitudinal data (1991–94) of over 4,000 individuals in 51 villages in Tanzania. A 10% increase in income reduces the number of illnesses by 0.02. We also find that a 10% increase in income implies an increase of about 0.1 vaccinations of children under six.

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  • Fichera, Eleonora & Savage, David, 2015. "Income and Health in Tanzania. An Instrumental Variable Approach," World Development, Elsevier, vol. 66(C), pages 500-515.
    • Handle: RePEc:eee:wdevel:v:66:y:2015:i:c:p:500-515
    DOI: 10.1016/j.worlddev.2014.09.016
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    9. Susmita Baulia, 2018. "Is household shock a boon or bane to the utilisation of preventive healthcare for children? Evidence from Uganda," Discussion Papers 121, Aboa Centre for Economics.
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    11. Magambo, Isaiah & Dikgang, Johane & Gelo, Dambala & Tregenna, Fiona, 2021. "Gold-Mining Pollution Exposure, Health Effects and Private Healthcare Expenditure in Tanzania," MPRA Paper 108800, University Library of Munich, Germany.
    12. Beatrice Baaba Tawiah, 2023. "The Effect of Children on Health," Working Papers Dissertations 103, Paderborn University, Faculty of Business Administration and Economics.
    13. Schmitz, Hendrik & Tawiah, Beatrice Baaba, 2023. "Life-cycle health effects of compulsory schooling," Ruhr Economic Papers 1006, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    14. Obadia Kyetuza Bishoge & Benatus Norbert Mvile, 2020. "The “resource curse” from the oil and natural gas sector: how can Tanzania avoid it in reality?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(3), pages 389-404, October.
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    16. Ren, Yanjun & Castro Campos, Bente & Loy, Jens-Peter & Brosig, Stephan, 2019. "Low-income and overweight in China: Evidence from a life-course utility model," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 18(8), pages 1753-1767.

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