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....
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/424101557250234558/Can-Micro-Credit-Support-Public-Health-Subsidy-Programs http://hdl.handle.net/10986/31671 |
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okr-10986-316712022-04-25T12:21:53Z Can Micro-Credit Support Public Health Subsidy Programs? Augsburg, Britta Caeyers, Bet Malde, Bansi MICROFINANCE SUBSIDY SANITATION PUBLIC HEALTH MICROCREDIT 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. 2019-05-10T14:58:14Z 2019-05-10T14:58:14Z 2019-05 Working Paper http://documents.worldbank.org/curated/en/424101557250234558/Can-Micro-Credit-Support-Public-Health-Subsidy-Programs http://hdl.handle.net/10986/31671 English Policy Research Working Paper;No. 8846 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
MICROFINANCE SUBSIDY SANITATION PUBLIC HEALTH MICROCREDIT |
| spellingShingle |
MICROFINANCE SUBSIDY SANITATION PUBLIC HEALTH MICROCREDIT Augsburg, Britta Caeyers, Bet Malde, Bansi Can Micro-Credit Support Public Health Subsidy Programs? |
| relation |
Policy Research Working Paper;No. 8846 |
| description |
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. |
| format |
Working Paper |
| author |
Augsburg, Britta Caeyers, Bet Malde, Bansi |
| author_facet |
Augsburg, Britta Caeyers, Bet Malde, Bansi |
| author_sort |
Augsburg, Britta |
| title |
Can Micro-Credit Support Public Health Subsidy Programs? |
| title_short |
Can Micro-Credit Support Public Health Subsidy Programs? |
| title_full |
Can Micro-Credit Support Public Health Subsidy Programs? |
| title_fullStr |
Can Micro-Credit Support Public Health Subsidy Programs? |
| title_full_unstemmed |
Can Micro-Credit Support Public Health Subsidy Programs? |
| title_sort |
can micro-credit support public health subsidy programs? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/424101557250234558/Can-Micro-Credit-Support-Public-Health-Subsidy-Programs http://hdl.handle.net/10986/31671 |
| _version_ |
1764474870886825984 |