Income and Health in Tanzania: An Instrumental Variable Approach

Eleonora Fichera, David Savage

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

There is a substantial debate over the direction of the causal relation between income and health. This is important for our understanding of the health production process and for the policy debate over improving healthcare. We instrument income with rainfall measurements by matching satellite information on timing and positioning of 21 rainfall stations to longitudinal data (1991–94) of over 4,000 individuals in 51 villages in Tanzania. A 10% increase in income reduces the number of illnesses by 0.02. We also find that a 10% increase in income implies an increase of about 0.1 vaccinations of children under six.
Original languageEnglish
Pages (from-to)500-515
JournalWorld Development
Volume66
Early online date17 Oct 2014
DOIs
Publication statusPublished - Feb 2015

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