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Private Health Investments under Competing Risks: Evidence from Malaria Control in Senegal

Author

Listed:
  • Pauline Rossi

    (UvA - University of Amsterdam [Amsterdam])

  • Paola Villar

    (INED - Institut national d'études démographiques, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This study exploits the introduction of high subsidies for anti-malaria products in Senegal in 2009 to investigate if malaria prevents parents to invest in child health. Building upon the seminal paper of Dow et al. (1999), we develop a simple model of health investments under competing mortality risks, in which people allocate expenses to equalize lifetime across all causes of death. We predict that private health investments to fight malaria as well as other diseases should increase in response to anti-malaria public interventions. To test this prediction, we use original panel data from a Senegalese household survey combined with geographical information on malaria prevalence. Our strategy is to compare the evolution of child health expenditures before and after anti-malaria interventions, between malarious and non-malarious regions of Senegal. We find that health expenditures in malarious regions catch up with non-malarious regions, at the extensive and intensive margins, and both in level and in composition. The same result holds for parental health-seeking behavior in case of other diseases like diarrhea. We provide evidence that these patterns cannot be explained by differential trends in total income or access to healthcare or child morbidity between malarious and non-malarious regions. Our results suggest that behavioral responses to anti-malaria campaigns magnify their impact on all-cause mortality for children.

Suggested Citation

  • Pauline Rossi & Paola Villar, 2017. "Private Health Investments under Competing Risks: Evidence from Malaria Control in Senegal," PSE Working Papers halshs-01634658, HAL.
  • Handle: RePEc:hal:psewpa:halshs-01634658
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01634658
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    References listed on IDEAS

    as
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 5th October 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-10-05 11:00:05

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    More about this item

    Keywords

    Health expenses; Malaria; Africa; Human capital; Competing risks;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I1 - Health, Education, and Welfare - - Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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