Why do health facilities in developing countries do so poorly? This paper examines the role of financial constraints. I describe an experiment in which we surprised health workers in randomly selected public-sector health clinics in Nigeria with a $1600 grant paid out in installments over one year. Its administration was left entirely to health workers. I show that the award led to large productivity gains. Using expenditure data combined with novel textual data I provide an explanation for these effects. I show that the award increased investments in physical and human capital, led to lower prices for patients, and inspired health workers to do better.

Co-hosted with the Department of Medical Ethics and Health Policy

Please note: Registration for this event is required. In-person attendance is strongly encouraged, although virtual access will be provided for all registrants.

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Speaker

Edward Okeke, MD, PhD is a senior economist at RAND and a professor of policy analysis at the Pardee RAND Graduate School. He is an applied microeconomist and a physician with training in public health. His research lies at the intersection of health and development. Specific areas of interest include the returns to health care in the formal sector, adoption of preventive health technologies, investments in health and human capital, and maternal and infant health. Much of Okeke’s work is in sub-Saharan Africa, but he also works in South Asia and Latin America.