Can Micro-Credit Support Public Health Subsidy Programs?
The low take-up of cost-effective and highly subsidised preventive health technologies in low-income countries remains a puzzle. One under-studied reason is that the design of subsidy schemes is such that households remain financially constrained. This paper analyses whether, and how, micro-finance...
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| Sprache: | English |
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The World Bank
2019
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| 520 | |a The low take-up of cost-effective and highly subsidised preventive health technologies in low-income countries remains a puzzle. One under-studied reason is that the design of subsidy schemes is such that households remain financially constrained. This paper analyses whether, and how, micro-finance supports a large public health subsidy program in the developing world-the Swachh Bharat Mission-in achieving its aim of increasing uptake of individual household latrines. Exploiting a cluster randomised controlled experiment of a sanitation micro-finance program that coincided with the launch of the SBM program, and unique survey data matched to administrative data, findings reveal that the complementarity runs on two levels: First, micro-credit allows households officially ineligible for the subsidy to invest in sanitation by alleviating credit constraints. Second, micro-credit also helps subsidy eligible households to overcome short-term liquidity constraints induced by the remuneration-post-verification subsidy design to invest in sanitation. Subsidy eligible households living in areas experiencing large delays in subsidy disbursement, or high toilet costs, are more likely to take a sanitation loan, but less likely to use the loan to construct a toilet | ||
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| spellingShingle | Augsburg, Britta Can Micro-Credit Support Public Health Subsidy Programs? |
| title | Can Micro-Credit Support Public Health Subsidy Programs? |
| title_auth | Can Micro-Credit Support Public Health Subsidy Programs? |
| title_exact_search | Can Micro-Credit Support Public Health Subsidy Programs? |
| title_full | Can Micro-Credit Support Public Health Subsidy Programs? Augsburg, Britta |
| title_fullStr | Can Micro-Credit Support Public Health Subsidy Programs? Augsburg, Britta |
| title_full_unstemmed | Can Micro-Credit Support Public Health Subsidy Programs? Augsburg, Britta |
| title_short | Can Micro-Credit Support Public Health Subsidy Programs? |
| title_sort | can micro credit support public health subsidy programs |
| url | https://doi.org/10.1596/1813-9450-8846 |
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