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

Working Paper: CEPR ID: DP8976

Authors: Pedro Carneiro; Tewolde Ghebremeskel; Joseph Keating; Andrea Locatelli

Abstract: 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.

Keywords: crowding-out; development; health; malaria

JEL Codes: I10


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Indoor Residual Spraying (IRS) (H23)ITN ownership (L32)
Indoor Residual Spraying (IRS) (H23)ITN usage (Y20)
Indoor Residual Spraying (IRS) (H23)heightened awareness about malaria (I15)
heightened awareness about malaria (I15)ITN ownership (L32)
Indoor Residual Spraying (IRS) (H23)preventive behaviors (I12)

Back to index