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Do Public Health Interventions Crowd Out Private Health Investments? Malaria Control Policies in Eritrea

Listed author(s):
  • Carneiro, Pedro
  • Ghebremeskel, Tewolde
  • Keating, Joseph
  • Locatelli, Andrea

It 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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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8976.

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Date of creation: May 2012
Handle: RePEc:cpr:ceprdp:8976
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