 Do non-monetary prices target the poor? Evidence from a field experiment in IndiaJournal of Development Economics, 2018, vol. 133, issue C, 15-32 Abstract: This paper uses willingness to pay data from a field experiment in India to study targeting health products to the poor, using monetary prices and non-monetary prices (time costs). I model demand for the product at monetary and non-monetary prices. The model illustrates that monetary prices screen out the poor and that whether non-monetary prices screen out the non-poor is theoretically ambiguous because of opposing income and substitution effects. I find monetary prices select richer households and non-monetary prices do not provide strong selection on income. Both the poor and non-poor appear very elastic in the non-monetary price because of the high value of time in home production. I evaluate the problem of a principal with a fixed budget whose objective places some weight on coverage and some weight on targeting. Despite better targeting with non-monetary prices, the principal optimally chooses a monetary price for a large range of parameters. Keywords: Non-monetary price; Self-selection mechanism; Targeting; Willingness to pay; Health products; India (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:133:y:2018:i:c:p:15-32 DOI: 10.1016/j.jdeveco.2018.01.010 Access Statistics for this article Journal of Development Economics is currently edited by M. R. Rosenzweig More articles in Journal of Development Economics from Elsevier |
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