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Learning, Misallocation, and Technology Adoption: Evidence from New Malaria Therapy in Tanzania

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  • Adhvaryu, Achyuta

    (Yale University)

Abstract

I show that malaria misdiagnosis, common in resource-poor settings, decreases the expected effectiveness of an important new therapy--since only a fraction of treated individuals have malaria--and reduces the rate of learning via increased noise. Using pilot program data from Tanzania, I exploit variation in the location and timing of survey enumeration to construct reference groups composed of randomly chosen, geographically and temporally proximate acutely ill individuals. I show that learning is stronger and adoption rates are higher in villages with more misdiagnosis. Subsidizing diagnostic tools or improving initial targeting of new technologies may thus accelerate uptake through learning.

Suggested Citation

  • Adhvaryu, Achyuta, 2011. "Learning, Misallocation, and Technology Adoption: Evidence from New Malaria Therapy in Tanzania," Working Papers 92, Yale University, Department of Economics.
  • Handle: RePEc:ecl:yaleco:92
    as

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    References listed on IDEAS

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    7. Pascaline Dupas, 2014. "Short‐Run Subsidies and Long‐Run Adoption of New Health Products: Evidence From a Field Experiment," Econometrica, Econometric Society, vol. 82(1), pages 197-228, January.
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    Cited by:

    1. Berthélemy, Jean-Claude & Gaudart, Jean & Thuilliez, Josselin, 2015. "Prevention or treatment? The case of malaria," Economics Letters, Elsevier, vol. 131(C), pages 16-19.
    2. Jean-Claude Berthélemy & Victor Doubliez & Josselin Thuilliez, 2015. "Prevention or treatment? The introduction of a new antimalarial drug in Angola," Documents de travail du Centre d'Economie de la Sorbonne 15089, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    3. Raphaël Soubeyran, 2019. "Technology adoption and pro-social preferences," CEE-M Working Papers halshs-02291905, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.
    4. Alexander E. Saak & David A. Hennessy, 2018. "A model of reporting and controlling outbreaks by public health agencies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(1), pages 21-64, July.
    5. Svensson, Jakob & Björkman Nyqvist, Martina & Yanagizawa-Drott, David, 2012. "Can Good Products Drive Out Bad? Evidence from Local Markets for (Fake?) Antimalarial Medicine in Uganda," CEPR Discussion Papers 9114, C.E.P.R. Discussion Papers.
    6. Alessandro Tarozzi & Aprajit Mahajan & Brian Blackburn & Dan Kopf & Lakshmi Krishnan & Joanne Yoong, 2014. "Micro-loans, Insecticide-Treated Bednets, and Malaria: Evidence from a Randomized Controlled Trial in Orissa, India," American Economic Review, American Economic Association, vol. 104(7), pages 1909-1941, July.
    7. Cohen, Jessica & Saran, Indrani, 2018. "The impact of packaging and messaging on adherence to malaria treatment: Evidence from a randomized controlled trial in Uganda," Journal of Development Economics, Elsevier, vol. 134(C), pages 68-95.
    8. Jessica Cohen & Pascaline Dupas & Simone Schaner, 2015. "Price Subsidies, Diagnostic Tests, and Targeting of Malaria Treatment: Evidence from a Randomized Controlled Trial," American Economic Review, American Economic Association, vol. 105(2), pages 609-645, February.
    9. Powell-Jackson, Timothy & Ansah, Evelyn K., 2015. "The indirect effects of subsidised healthcare in rural Ghana," Social Science & Medicine, Elsevier, vol. 144(C), pages 96-103.
    10. Milusheva,Sveta, 2020. "Using Mobile Phone Data to Reduce Spread of Disease," Policy Research Working Paper Series 9198, The World Bank.

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    More about this item

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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