Do non-monetary prices target the poor? : evidence from a field experiment in India

Bridget Hoffmann

This paper uses willingness to pay (WTP) data from a field experiment in Hyderabad, India in 2013 to determine whether non-monetary prices better target health products to the poor than monetary prices. Monetary WTP is increasing in income and non-monetary WTP is weakly decreasing in income. Household fixed effects in a pooled sample of monetary WTP and non-monetary WTP are used to compare the correlation of income and WTP across price types. It is found that non-monetary WTP falls relative to monetary WTP as income rises. Finally, a greater fraction of demand is comprised of the poor at non-monetary prices.

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Year of publication:	October 2016
Authors:	Hoffmann, Bridget
Publisher:	[Washington, DC] : Inter-American Development Bank (IDB)
Subject:	Non-monetary price \| Ordeal mechanism \| Targeting \| Subsidies \| Indien \| India \| Armutsbekämpfung \| Poverty reduction \| Feldforschung \| Field research \| Subvention \| Subsidy \| Armut \| Poverty \| Wirkungsanalyse \| Impact assessment \| Experiment