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Spillovers without Social Interactions in Urban Sanitation

By: Material type: TextTextPublication details: American Economic Journal: Applied Economics; 2024Description: 482-515ISSN:
  • 1945-7782
Subject(s): Online resources: Summary: We run a randomized controlled trial coupled with lab-in-the-field social network experiments in urban Dakar. Decision spillovers and health externalities play a large role in determining uptake of sanitation technology, with decision spillovers being largest among households that don't receive significant subsidies. There is no evidence that the spillovers are explained by social forces in general, nor by specific social mechanisms such as learning from others, social pressure, or reciprocity. We do find evidence of a fourth, nonsocial, mechanism impacting decisions: increasing health benefits. As more neighbors adopt the sanitary technology, it becomes more worthwhile for other households to adopt as well.
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Article Index Article Index Dr VKRV Rao Library Vol. 16, No. 3 Not for loan AI400

We run a randomized controlled trial coupled with lab-in-the-field social network experiments in urban Dakar. Decision spillovers and health externalities play a large role in determining uptake of sanitation technology, with decision spillovers being largest among households that don't receive significant subsidies. There is no evidence that the spillovers are explained by social forces in general, nor by specific social mechanisms such as learning from others, social pressure, or reciprocity. We do find evidence of a fourth, nonsocial, mechanism impacting decisions: increasing health benefits. As more neighbors adopt the sanitary technology, it becomes more worthwhile for other households to adopt as well.

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