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Governance and the effectiveness of public health subsidies: Evidence from Ghana, Kenya and Uganda.


ABSTRACT: Distributing subsidized health products through existing health infrastructure could substantially and cost-effectively improve health in sub-Saharan Africa. There is, however, widespread concern that poor governance - in particular, limited health worker accountability - seriously undermines the effectiveness of subsidy programs. We audit targeted bednet distribution programs to quantify the extent of agency problems. We find that around 80% of the eligible receive the subsidy as intended, and up to 15% of subsidies are leaked to ineligible people. Supplementing the program with simple financial or monitoring incentives for health workers does not improve performance further and is thus not cost-effective in this context.

SUBMITTER: Dizon-Ross R 

PROVIDER: S-EPMC5860667 | biostudies-literature | 2017 Dec

REPOSITORIES: biostudies-literature

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Governance and the effectiveness of public health subsidies: Evidence from Ghana, Kenya and Uganda.

Dizon-Ross Rebecca R   Dupas Pascaline P   Robinson Jonathan J  

Journal of public economics 20170928


Distributing subsidized health products through existing health infrastructure could substantially and cost-effectively improve health in sub-Saharan Africa. There is, however, widespread concern that poor governance - in particular, limited health worker accountability - seriously undermines the effectiveness of subsidy programs. We audit targeted bednet distribution programs to quantify the extent of agency problems. We find that around 80% of the eligible receive the subsidy as intended, and  ...[more]

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