When Should Governments Subsidize Health? The Case of Mass Deworming
Amrita Ahuja,
Sarah Baird,
Joan Hamory Hicks,
Michael Kremer,
Edward Miguel and
Shawn Powers
No 21148, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
We discuss how evidence and theory can be combined to provide insight on the appropriate subsidy level for health products, focusing on the specific case of deworming. Although intestinal worm infections can be treated using safe, low-cost drugs, some have challenged the view that mass school-based deworming should be a policy priority. We review well-identified research which both uses experimental or quasi-experimental methods to demonstrate causal relationships and adequately accounts for epidemiological externalities from deworming treatment, including studies of deworming campaigns in the Southern United States, Kenya, and Uganda. The existing evidence shows consistent positive impacts on school participation in the short run and on academic test scores, employment, and income in the long run, while suggesting that most parents will not pay for deworming treatment that is not fully subsidized. There is also evidence for a fiscal externality through higher future tax revenue, which may exceed the cost of the program. Our analysis suggests that the economic benefits of school-based deworming programs are likely to exceed their costs in places where worm infestations are endemic. This would likely be the case even if the benefits were only a fraction of estimates in the existing literature.
JEL-codes: H2 H51 I1 I12 I15 I2 I20 I25 I3 O1 (search for similar items in EconPapers)
Date: 2015-05
New Economics Papers: this item is included in nep-hea and nep-ltv
Note: DEV EH
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Citations: View citations in EconPapers (12)
Published as Amrita Ahuja & Sarah Baird & Joan Hamory Hicks & Michael Kremer & Edward Miguel & Shawn Powers, 2015. "When Should Governments Subsidize Health? The Case of Mass Deworming," The World Bank Economic Review, vol 29(suppl 1), pages S9-S24.
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Related works:
Journal Article: When Should Governments Subsidize Health? The Case of Mass Deworming (2015)
Working Paper: When Should Governments Subsidize Health? The Case of Mass Deworming (2014)
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