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Incentivizing Demand for Supply-Constrained Care: Institutional Birth in India

Andrews, A; Vera Hernandez, A; (2022) Incentivizing Demand for Supply-Constrained Care: Institutional Birth in India. The Review of Economics and Statistics (In press). Green open access

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Abstract

We study the effects of incentivizing individuals to use healthcare in the presence of congestion externalities. Our theoretical model highlights interesting interactions between the size and shape of the congestion externality, and what drives selection into institutional delivery. We focus on a conditional cash transfer program (JSY) in India that paid women to give birth in medical facilities. In areas with below-median health-system capacity, JSY increased perinatal mortality. We provide evidence that a congestion externality was a key driver of these harmful effects. Moreover, JSY reduced childhood vaccination rates suggesting a diversion of resources away from routine services.

Type: Article
Title: Incentivizing Demand for Supply-Constrained Care: Institutional Birth in India
Open access status: An open access version is available from UCL Discovery
Publisher version: https://direct.mit.edu/rest
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher's terms and conditions.
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10136255
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