Price subsidies, diagnostic tests, and targeting of malaria treatment: Evidence from a randomized controlled trial

Jessica Cohen, Pascaline Dupas, Simone Schaner

Research output: Contribution to journalArticlepeer-review

93 Scopus citations

Abstract

Both under-and over-treatment of communicable diseases are public bads. But efforts to decrease one run the risk of increasing the other. Using rich experimental data on household treatment-seeking behavior in Kenya, we study the implications of this trade-off for subsidizing life-saving antimalarials sold over-The-counter at retail drug outlets. We show that a very high subsidy (such as the one under consideration by the international community) dramatically increases access, but nearly one-half of subsidized pills go to patients without malaria. We study two ways to better target subsidized drugs: reducing the subsidy level, and introducing rapid malaria tests over-The-counter.

Original languageEnglish (US)
Pages (from-to)609-645
Number of pages37
JournalAmerican Economic Review
Volume105
Issue number2
DOIs
StatePublished - Feb 1 2015
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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