University of Chicago
Booth School of Business
5807 South Woodlawn Avenue
Chicago, IL 60637
NBER Working Papers and Publications
|July 2015||Governance and the Effectiveness of Public Health Subsidies|
with Pascaline Dupas, Jonathan Robinson: w21324
Heavily subsidizing essential health products through existing health infrastructure has the potential to substantially decrease child mortality in sub-Saharan Africa. There is, however, widespread concern that poor governance and in particular limited accountability among health workers seriously undermines the effectiveness of such programs. We performed innovative audits on bed net distribution programs in three countries (Ghana, Kenya and Uganda) to investigate local agency problems and their determinants in the allocation of targeted subsidies. Overall, agency concerns appear modest. Around 80% of the eligible receive the subsidy as intended and leakage to the ineligible appears limited, even when the ineligible have a high willingness to pay. The estimated level of mistargeting only ...