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

116 Pages Posted: 26 May 2012

See all articles by Pedro Manuel Carneiro

Pedro Manuel Carneiro

University College London - Department of Economics; IZA Institute of Labor Economics

Andrea Locatelli

Georgetown University

Tewolde Ghebremeskel

affiliation not provided to SSRN

Joseph Keating

Tulane University - School of Public Health and Tropical Medicine

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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: malaria, bed nets, indoor residual spray, information, beliefs, behavior, crowding out, health, developing countries

JEL Classification: D12, D83, H42, I10, I12

Suggested Citation

Carneiro, Pedro Manuel and Locatelli, Andrea and Ghebremeskel, Tewolde and Keating, Joseph, Do Public Health Interventions Crowd Out Private Health Investments? Malaria Control Policies in Eritrea. IZA Discussion Paper No. 6560, Available at SSRN: https://ssrn.com/abstract=2066983

Pedro Manuel Carneiro (Contact Author)

University College London - Department of Economics ( email )

Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Andrea Locatelli

Georgetown University ( email )

Washington, DC 20057
United States

Tewolde Ghebremeskel

affiliation not provided to SSRN ( email )

No Address Available

Joseph Keating

Tulane University - School of Public Health and Tropical Medicine

New Orleans, LA 70112
United States

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