Do public health interventions crowd out private health investments? Malaria control policies in Eritrea

Autores: Armand, Alex; Carneiro, P.; Locatelli, A.; Mihreteab, S.; Keating, J.
Título de la revista: LABOUR ECONOMICS
ISSN: 0927-5371
Volumen: 45
Páginas: 107 - 115
Fecha de publicación: 2017
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.