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SHORT-RUN SUBSIDIES AND LONG-RUN ADOPTION OF NEW HEALTH PRODUCTS: EVIDENCE FROM A FIELD EXPERIMENT

Dupas, Pascaline

Econometrica, 2014-01, Vol.82 (1), p.197-228 [Periódico revisado por pares]

Oxford, UK: Econometric Society

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  • Título:
    SHORT-RUN SUBSIDIES AND LONG-RUN ADOPTION OF NEW HEALTH PRODUCTS: EVIDENCE FROM A FIELD EXPERIMENT
  • Autor: Dupas, Pascaline
  • Assuntos: anchoring ; Antiseptics ; Developing countries ; Disease risk ; Econometric models ; Econometrics ; Experimentation ; Field experiments ; Government subsidies ; Health ; Kenya ; LDCs ; Malaria ; Neighborhoods ; Observational learning ; prevention ; Products ; Public health ; Random sampling ; Retail stores ; social learning ; Studies ; Subsidies ; Technology adoption ; Vouchers ; Willingness to pay
  • É parte de: Econometrica, 2014-01, Vol.82 (1), p.197-228
  • Notas: I am grateful to Jean‐Marc Robin, four anonymous referees, Arun Chandrasekhar, Christian Hellwig, Adriana Lleras‐Muney, and Aprajit Mahajan for detailed suggestions, and to Sandra Black, Sylvain Chassang, Jessica Cohen, Esther Duflo, Giacomo De Giorgi, Liran Einav, Frederico Finan, Seema Jayachandran, Robert Jensen, Rohini Pande, Jonathan Robinson, Justin Sydnor, and numerous seminar participants for helpful comments and discussions. I thank Moses Baraza, Katie Conn, and their field team for their outstanding project implementation and data collection. The study was funded by the Acumen Fund, the Adessium Foundation, the Exxon Mobil Foundation, and a Dartmouth Faculty Burke Award. The Olyset nets used in the study were donated by Sumitomo Chemical. The data and analysis code are available online (see Dupas (2014)). All errors are my own.
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  • Descrição: Short-run subsidies for health products are common in poor countries. How do they affect long-run adoption? A common fear among development practitioners is that one-off subsidies may negatively affect long-run adoption through reference-dependence: People might anchor around the subsidized price and be unwilling to pay more for the product later. But for experience goods, one-off subsidies could also boost long-run adoption through learning. This paper uses data from a two-stage randomized pricing experiment in Kenya to estimate the relative importance of these effects for a new, improved antimalarial bed net. Reduced form estimates show that a one-time subsidy has a positive impact on willingness to pay a year later inherit. To separately identify the learning and anchoring effects, we estimate a parsimonious experience-good model. Estimation results show a large, positive learning effect but no anchoring. We black then discuss the types of products and the contexts inherit for which these results may apply.
  • Editor: Oxford, UK: Econometric Society
  • Idioma: Inglês
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  • Realização: ABCD-USP USP   Logos de Redes Sociais: Freepik

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