Black market trade: an example from a rural hospital in Kenya

Germano Mwabu and Joseph Wang'ombe

Applied Economics Letters, 1996, vol. 3, issue 4, 213-215

Abstract: Provision of mortuary services free of charge in a government hospital in rural Kenya is found to have led to a black market trade in these services. The principal participants in the market were the mortuary attendants and bereaved families. A method is developed for determining black market expenditures on mortuary services at a government hospital. On average, a bereaved family spent about US $2.30 on mortuary services. Burial expenses were also substantial, amounting to some US $75 per bereaved family. It is shown that free provision of mortuary services in government hospitals has a hidden cost, that could exceed the fee that users can be expected to pay openly.

Date: 1996
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DOI: 10.1080/758520866

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