EconPapers    
Economics at your fingertips  
 

Can Micro-Credit Support Public Health Subsidy Programs?

Britta Augsburg, Bet Caeyers and Bansi Malde
Additional contact information
Bet Caeyers: Institute for Fiscal Studies and Institute for Fiscal Studies

No W19/10, IFS Working Papers from Institute for Fiscal Studies

Abstract: The low take-up of cost-effective and highly subsidised preventive health technologies in low-income countries remains a puzzle. One under-studied reason is that the design of subsidy schemes is such that households remain financially constrained. In this paper we analyse whether, and how, micro-finance supports a large public health subsidy program in the developing world - the Swachh Bharat Mission - in achieving its aim of increasing uptake of individual household latrines. Exploiting a cluster randomised controlled experiment of a sanitation micro-finance program that coincided with the launch of the SBM program, and unique survey data matched to administrative data, we find that the complementarity runs on two levels: First, micro-credit allows households officially ineligible for the subsidy to invest in sanitation by alleviating credit constraints. Second, micro-credit also helps subsidy eligible households to overcome short-term liquidity constraints induced by the remuneration-post-verification subsidy design to invest in sanitation. Subsidy eligible households living in areas experiencing large delays in subsidy disbursement, or high toilet costs, are more likely to take a sanitation loan, but less likely to use the loan to construct a toilet.

Keywords: micro-finance; credit constraints; toilets; public health (search for similar items in EconPapers)
Date: 2019-05-08
New Economics Papers: this item is included in nep-dev and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
https://www.ifs.org.uk/uploads/publications/wps/WP201910.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (https://www.ifs.org.uk/uploads/publications/wps/WP201910.pdf [302 Found]--> https://ifs.org.uk/uploads/publications/wps/WP201910.pdf)

Related works:
Working Paper: Can Micro-Credit Support Public Health Subsidy Programs ? (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ifs:ifsewp:19/10

Ordering information: This working paper can be ordered from
The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE

Access Statistics for this paper

More papers in IFS Working Papers from Institute for Fiscal Studies The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE. Contact information at EDIRC.
Bibliographic data for series maintained by Emma Hyman ().

 
Page updated 2024-02-19
Handle: RePEc:ifs:ifsewp:19/10