Achyuta Adhvaryu photo

Learning, Misallocation, and Technology Adoption: Evidence from New Malaria Therapy in Tanzania

Publication Abstract

Adhvaryu, Achyuta. 2014. "Learning, Misallocation, and Technology Adoption: Evidence from New Malaria Therapy in Tanzania." Review of Economic Studies, 81(4): 1331-1365.

I study how the misallocation of new technology to individuals, who have low ex post returns to its use, affects learning and adoption behaviour. I focus on anti-malarial treatment, which is frequently over-prescribed in many low-income country contexts where diagnostic tests are inaccessible. I show that misdiagnosis reduces average therapeutic effectiveness, because only a fraction of adopters actually have malaria, and slows the rate of social learning due to increased noise. I use data on adoption choices, the timing and duration of fever episodes, and individual blood slide confirmations of malarial status from a pilot study for a new malaria therapy in Tanzania to show that individuals whose reference groups experienced fewer misdiagnoses exhibited stronger learning effects and were more likely to adopt.

10.1093/restud/rdu020

PMCID: PMC4341843. (Pub Med Central)

Country of focus: Tanzania.

Browse | Search | Books | Next

PSC In The News

RSS Feed icon

Smock talks data with Cadillac News: fewer people getting married in U.S., Wexford County

More News

Highlights

National Study of Caregiving (NSOC) Extended

Fabian Pfeffer receives Doris Entwisle Early Career Award from American Sociological Association

More Highlights


Connect with PSC follow PSC on Twitter Like PSC on Facebook