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Navigating the Maize of Poverty: Intra-Household Allocation and Investment in Children’s Human Capital in Tanzania
By Saheel Chodavadia
Intra-household resource allocation influences investment in children’s human capital and hence influences long-term poverty levels. I study how climate shocks in Tanzania shift intra-household bargaining power and investment in children’s human capital. Past empirical work finds that bargaining power is associated with income, assets, education, and other often unobservable factors. Anthropological evidence from Tanzania suggests that male decision-makers in poor households control most income and own most assets. Conditioning on changes in total household resources due to climate shocks, I find evidence consistent with climate shocks increasing female bargaining power through a reduction in male decision-maker’s income. Specifically, climate shocks in households with more educated women increase investment in children’s education and improve anthropometric measures of health. Lastly, I comment on the usefulness of relative education as a proxy for bargaining power in contexts of data and cultural limitations on distinct assets and income streams for decision-makers.
Advisors: Professor Robert Garlick, Professor Michelle Connolly | JEL Codes: D0, D13, I20
By Linda Li
Since the 1980’s, the market structure of vaccines has become increasingly oligopolistic, and in some cases monopolistic. Alongside these supply trends, we see the emergence and growth of group procurement schemes on the demand side of the market. National government and international organization procure vaccines on behalf of end users. Two such organizations include the UNICEF Supply Division and the PAHO EPI Revolving Fund, for which participation is based on income or geography. Consistent with one of the main goals of group procurement, these groups obtain price discounts on vaccines relative to the private sector. This paper seeks to disentangle two possible explanations for this observed price dispersion using vaccine price data over the years 2002-2012 from UNICEF, PAHO, and the U.S. The two explanations are that of price discrimination and bargaining power. Using proxy variables in a fixed effects model, I find that price discrimination does have a significant impact on price discount. I also find support for a bargaining power effect, however with less certainty, and the existence of supply constraints. These findings have important policy implications for national governments, as well as procurement groups.
Advisor: David Ridley | JEL Codes: I11, I18, L22 | Tagged: