Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200329
Authors: 
Augsburg, Britta
Caeyers, Bet
Malde, Bansi
Year of Publication: 
2019
Series/Report no.: 
IFS Working Papers No. W19/10
Abstract: 
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. In this paper we analyse 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, we find 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.
JEL: 
D14
G41
H24
I12
I38
O16
Document Type: 
Working Paper

Files in This Item:
File
Size
973.94 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.