Short‐Run Subsidies and Long‐Run Adoption of New Health Products: Evidence From a Field Experiment

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.     

Can we study the family environment through census data? A comparison of households,dwellings, and domestic units in rural Mali

Are ‘statistical households’, as defined in national censuses, able to describe the family environment in Africa? Do they correspond to the family units that individuals identify with? To address this issue, we build on a follow-up survey in south-east Mali, which links national censuses with local censuses at the individual level (N?≈?28,000 census observations). Three cross-sectional snapshots of family arrangements are compared: households recorded in national censuses, and family economic units and residential units recorded by local censuses. The national census household data appear poorly suited to documenting family living arrangements. They do not account for family economic units or residential units, but are highly conditioned by a normative representation centred on the nuclear family. Therefore, they fail to describe the complexity and diversity of people’s living spaces, making particular types of living arrangements invisible and increasing the likelihood of omitting individuals who do not fit into a nuclear model.