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Keeping the Doctor Away: Experimental Evidence on Investment in Preventative Health Products

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  • Jennifer M. Meredith
  • Jonathan Robinson
  • Sarah Walker
  • Bruce Wydick

Abstract

Household investment in preventative health products is low in developing countries even though benefits from these products are very high. What interventions most effectively stimulate demand? In this paper, we experimentally estimate demand curves for health products in Kenya, Guatemala, India, and Uganda and test whether (1) information about health risk, (2) cash liquidity, (3) peer effects, and (4) intra-household differences in preferences affect demand. We find households to be highly sensitive to price and that both liquidity and targeting women increase demand. We find no effect of providing information, although genuine learning occurred, and we find no evidence of peer effects, although subjects discussed the product purchase decision extensively.

Suggested Citation

  • Jennifer M. Meredith & Jonathan Robinson & Sarah Walker & Bruce Wydick, 2013. "Keeping the Doctor Away: Experimental Evidence on Investment in Preventative Health Products," NBER Working Papers 19312, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:19312
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. keeping the doctor away
      by René Böheim in Econ Tidbits on 2013-08-13 10:59:00

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    Cited by:

    1. Teresa Molina Millán & Karen Macours, 2017. "Attrition in randomized control trials: Using tracking information to correct bias," FEUNL Working Paper Series novaf:wp1702, Universidade Nova de Lisboa, Faculdade de Economia.
    2. Jorge M. Agüero & Trinidad Beleche, 2016. "Health Shocks and the Long-Lasting Change in Health Behaviors: Evidence from Mexico," Working papers 2016-26, University of Connecticut, Department of Economics.
    3. Cho, Yoon Y. & Kalomba, Davie & Mobarak, A. Mushfiq & Orozco, Victor, 2013. "Gender Differences in the Effects of Vocational Training: Constraints on Women and Drop-Out Behavior," IZA Discussion Papers 7408, Institute for the Study of Labor (IZA).
    4. Gharad Bryan & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2014. "Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh," Econometrica, Econometric Society, vol. 82, pages 1671-1748, September.
    5. repec:eee:jeeman:v:86:y:2017:i:c:p:160-192 is not listed on IDEAS
    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. Clara Delavallade, 2014. "Quality Healthcare and Health Insurance Retention: Evidence from a Randomized Experiment in the Kolkata Slums," Working Papers id:5916, eSocialSciences.
    8. Silvia Prina & Heather Royer, 2013. "The Importance of Parental Knowledge and Social Norms: Evidence from Weight Report Cards in Mexico," NBER Working Papers 19344, National Bureau of Economic Research, Inc.
    9. Cho, Yoonyoung. & Kalomba, Davie. & Mobarak, Ahmed Mushfiq. & Orozco, Victor., 2015. "Differences in the effects of vocational training on men and women : constraints on women and drop-out behaviour," ILO Working Papers 994874103402676, International Labour Organization.
    10. Gharad Bryan & Shyamal Chowdhury & A. Mushfiq Mobarak, 2011. "Seasonal Migration and Risk Aversion," Working Papers id:4650, eSocialSciences.
    11. repec:eee:jhecon:v:54:y:2017:i:c:p:40-55 is not listed on IDEAS
    12. Travis J. Lybbert & Bruce Wydick, 2017. "Hope as Aspirations, Agency, and Pathways: Poverty Dynamics and Microfinance in Oaxaca, Mexico," NBER Chapters,in: The Economics of Poverty Traps National Bureau of Economic Research, Inc.
    13. 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.
    14. Dizon-Ross, Rebecca & Dupas, Pascaline & Robinson, Jonathan, 2015. "Governance and the Effectiveness of Public Health Subsidies," CEPR Discussion Papers 10690, C.E.P.R. Discussion Papers.
    15. Teresa Molina Millan & Karen Macours, 2017. "Attrition in randomized control trials: Using tracking information to correct bias," NOVAFRICA Working Paper Series wp1702, Universidade Nova de Lisboa, Faculdade de Economia, NOVAFRICA.
    16. Grant Miller & A. Mushfiq Mobarak, 2013. "Gender Differences in Preferences, Intra-Household Externalities, and Low Demand for Improved Cookstoves," NBER Working Papers 18964, National Bureau of Economic Research, Inc.
    17. Beltramo, Theresa & Blalock, Garrick & Levine, David I. & Simons, Andrew M., 2015. "The effect of marketing messages and payment over time on willingness to pay for fuel-efficient cookstoves," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 333-345.
    18. repec:eee:jhecon:v:53:y:2017:i:c:p:100-116 is not listed on IDEAS
    19. Pascaline Dupas & Edward Miguel, 2016. "Impacts and Determinants of Health Levels in Low-Income Countries," NBER Working Papers 22235, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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