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What is the price of prevention? New evidence from a field experiment

Edward N. Okeke, Clement A. Adepiti and Kayode O. Ajenifuja

Journal of Health Economics, 2013, vol. 32, issue 1, 207-218

Abstract: How does increasing access to treatment affect the demand for preventive testing? In this paper we present results from a field experiment in Nigeria in which we offered cervical cancer screening to women at randomly chosen prices. To test our hypothesis, we also offered women a lottery where the payoff was a subsidy towards the cost of cervical cancer treatment (conditional upon a diagnosis of cervical cancer). We find that women randomly selected to receive the conditional cancer treatment subsidy were about 4 percentage points more likely to take up screening than those in the control group. We also show that reducing the price of screening by 10 cents increased take-up by about 1 percentage point. These results offer compelling evidence that the optimal set of subsidies to increase take-up of preventive testing in developing countries, must include subsidies towards treatment costs (in addition to price subsidies).

Keywords: Randomized experiment; Prices; Demand; Prevention; Testing; Subsidies (search for similar items in EconPapers)
JEL-codes: C93 D01 D03 I12 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:32:y:2013:i:1:p:207-218

DOI: 10.1016/j.jhealeco.2012.10.001

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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