Micro-Loans, Insecticide-Treated Bednets, and Malaria: Evidence from a Randomized Controlled Trial in Orissa, India

Abstract

We describe findings from the first large-scale cluster randomized controlled trial in a developing country that evaluates the uptake of a health-protecting technology, insecticide-treated bednets (ITNs), through micro-consumer loans, as compared to free distribution and control conditions. Despite a relatively high price, 52 percent of sample households purchased ITNs, highlighting the role of liquidity constraints in explaining earlier low adoption rates. We find mixed evidence of improvements in malaria indices. We interpret the results and their implications within the debate about cost sharing, sustainability and liquidity constraints in public health initiatives in developing countries. (JEL D12, G21, H51, I12, I18, O15, O18)

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“…This is most notably due to a highly priceresponsive demand. Cohen and Dupas (2010) and Tarozzi et al (2014) observe very high price elasticities for insecticide-treated bednets, Kremer and Miguel (2007) for deworming drugs, Ashraf et al (2010) for water disinfectants, and Mobarak et al (2012) for improved biomass cookstoves. Based on this observation, Mobarak et al…”

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