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Learning, Misallocation, and Technology Adoption: Evidence from New Malaria Therapy in Tanzania.


ABSTRACT: I study how the misallocation of new technology to individuals who have low ex post returns to its use affects learning and adoption behavior. I focus on antimalarial treatment, which is frequently over-prescribed in many low-income country contexts where diagnostic tests are inaccessible. I show that misdiagnosis reduces average therapeutic effectiveness, because only a fraction of adopters actually have malaria, and slows the rate of social learning due to increased noise. I use data on adoption choices, the timing and duration of fever episodes, and individual blood slide confirmations of malarial status from a pilot study for a new malaria therapy in Tanzania to show that individuals whose reference groups experienced fewer misdiagnoses exhibited stronger learning effects and were more likely to adopt.

SUBMITTER: Adhvaryu A 

PROVIDER: S-EPMC4341843 | biostudies-literature | 2014

REPOSITORIES: biostudies-literature

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Learning, Misallocation, and Technology Adoption: Evidence from New Malaria Therapy in Tanzania.

Adhvaryu Achyuta A  

The Review of economic studies 20140101 4


I study how the misallocation of new technology to individuals who have low <i>ex post</i> returns to its use affects learning and adoption behavior. I focus on antimalarial treatment, which is frequently over-prescribed in many low-income country contexts where diagnostic tests are inaccessible. I show that misdiagnosis reduces average therapeutic effectiveness, because only a fraction of adopters actually have malaria, and slows the rate of social learning due to increased noise. I use data on  ...[more]

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