Sam Watson’s journal round-up for 25th February 2019

Every Monday our authors provide a round-up of some of the most recently published peer reviewed articles from the field. We don’t cover everything, or even what’s most important – just a few papers that have interested the author. Visit our Resources page for links to more journals or follow the HealthEconBot. If you’d like to write one of our weekly journal round-ups, get in touch.

Democracy does cause growth. Journal of Political Economy [RePEc] Published January 2019

Citizens of a country with a democratic system of government are able to affect change in its governors and influence policy. This threat of voting out the poorly performing from power provides an incentive for the government to legislate in a way that benefits the population. However, democracy is certainly no guarantee of good governance, economic growth, or population health as many events in the last ten years will testify. Similarly, non-democracies can also enact policy that benefits the people. A benevolent dictator is not faced with the same need to satisfy voters and can enact politically challenging but beneficial policies. People often point to China as a key example of this. So there remains the question as to whether democracy per se has any tangible economic or health benefits.

In a past discussion of an article on democratic reform and child health, I concluded that “Democratic reform is neither a sufficient nor necessary condition for improvements in child mortality.” Nevertheless democracy may still be beneficial, on average, given the in-built safeguards against poor leaders. This paper, which has been doing the rounds for years as a working paper, is another examination of the question of the impact of becoming democratic. Principally the article is focused on economic growth, but health and education outcomes feature (very) briefly. The concern I have with the article mentioned at the beginning of this paragraph and with this newly published article are that they do not consider in great detail why democratisation occurred. As much political science work points out, democratic reform can be demanded in poor economic conditions due to poor governance. For these endogenous changes economic growth causes democracy. Whereas in other countries democracy could come about in a more exogenous manner. Lumping them all in together may be misleading.

While the authors of this paper provide pages after pages of different regression specifications, including auto-regressive models and instrumental variables models, I remain unconvinced. For example, the instrument relies on ‘waves’ of transitions: a country is more likely to shift politically if its regional neighbours do, like the Arab Spring. But neither economic nor political conditions in a given country are independent of its neighbours. In somewhat of a rebuttal, Ruiz Pozuelo and other authors conducted a survey to try to identify and separate out those countries which transitioned to democracy endogenously and exogenously (from economic conditions). Their work suggests that the countries that transitioned exogenously did not experience growth benefits. Taken together this shows the importance of theory to guide empirical work, and not the other way round.

Effect of Novartis Access on availability and price of non-communicable disease medicines in Kenya: a cluster-randomised controlled trial. Lancet: Global Health Published February 2019

Access to medicines is one of the key barriers to achieving universal health care. The cost-effectiveness threshold for many low income countries rules out many potentially beneficial medicines. This is in part driven though by the high prices charged by pharmaceutical countries to purchase medicine, which often do not discriminate between purchasers with high and low abilities to pay. Novartis launched a scheme – Novartis Access – to provide access to medicines to low and middle income countries at a price of US$1 per treatment per month. This article presents a cluster randomised trial of this scheme in eight counties of Kenya.

The trial provided access to four treatment counties and used four counties as controls. Individuals selected at random within the counties with non-communicable diseases and pharmacies were the principal units within the counties at which outcomes were analysed. Given the small number of clusters, a covariate-constrained randomisation procedure was used, which generates randomisation that ensures a decent balance of covariates between arms. However, the analysis does not control for the covariates used in the constrained randomisation, which can lead to lower power and incorrect type one error rates. This problem is emphasized by the use of statistical significance to decide on what was and was not affected by the Novartis Access program. While practically all the drugs investigated show an improved availability, only the two with p<0.05 are reported to have improved. Given the very small sample of clusters, this is a tricky distinction to make! Significance aside, the programme appears to have had some success in improving access to diabetes and asthma medication, but not quite as much as hoped. Introductory microeconomics though would show how savings are not all passed on to the consumer.

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Sam Watson’s journal round-up for 26th November 2018

Every Monday our authors provide a round-up of some of the most recently published peer reviewed articles from the field. We don’t cover everything, or even what’s most important – just a few papers that have interested the author. Visit our Resources page for links to more journals or follow the HealthEconBot. If you’d like to write one of our weekly journal round-ups, get in touch.

Alcohol and self-control: a field experiment in India. American Economic Review Forthcoming

Addiction is complex. For many people it is characterised by a need or compulsion to take something, often to prevent withdrawal, often in conflict with a desire to not take it. This conflicts with Gary Becker’s much-maligned rational theory of addiction, which views the addiction as a choice to maximise utility in the long term. Under Becker’s model, one could use market-based mechanisms to end repeated, long-term drug or alcohol use. By making the cost of continuing to use higher then people would choose to stop. This has led to the development of interventions like conditional payment or cost mechanisms: a user would receive a payment on condition of sobriety. Previous studies, however, have found little evidence people would be willing to pay for such sobriety contracts. This article reports a randomised trial among rickshaw drivers in Chennai, India, a group of people with a high prevalence of high alcohol use and dependency. The three trial arms consisted of a control arm who received an unconditional daily payment, a treatment arm who received a small payment plus extra if they passed a breathalyser test, and a third arm who had the choice between either of the two payment mechanisms. Two findings are of much interest. First, the incentive payments significantly increased daytime sobriety, and second, over half the participants preferred the conditional sobriety payments over the unconditional payments when they were weakly dominated, and a third still preferred them even when the unconditional payments were higher than the maximum possible conditional payment. This conflicts with a market-based conception of addiction and its treatment. Indeed, the nature of addiction means it can override all intrinsic motivation to stop, or do anything else frankly. So it makes sense that individuals are willing to pay for extrinsic motivation, which in this case did make a difference.

Heterogeneity in long term health outcomes of migrants within Italy. Journal of Health Economics [PubMed] [RePEc] Published 2nd November 2018

We’ve discussed neighbourhood effects a number of times on this blog (here and here, for example). In the absence of a randomised allocation to different neighbourhoods or areas, it is very difficult to discern why people living there or who have moved there might be better or worse off than elsewhere. This article is another neighbourhood effects analysis, this time framed through the lens of immigration. It looks at those who migrated within Italy in the 1970s during a period of large northward population movements. The authors, in essence, identify the average health and mental health of people who moved to different regions conditional on duration spent in origin destinations and a range of other factors. The analysis is conceptually similar to that of two papers we discussed at length on internal migration in the US and labour market outcomes in that it accounts for the duration of ‘exposure’ to poorer areas and differences between destinations. In the case of the labour market outcomes papers, the analysis couldn’t really differentiate between a causal effect of a neighbourhood increasing human capital, differences in labour market conditions, and unobserved heterogeneity between migrating people and families. Now this article examining Italian migration looks at health outcomes, such as the SF-12, which limit the explanations since one cannot ‘earn’ more health by moving elsewhere. Nevertheless, the labour market can still impact upon health strongly.

The authors carefully discuss the difficulties in identifying causal effects here. A number of model extensions are also estimated to try to deal with some issues discussed. This includes a type of propensity score weighting approach, although I would emphasize that this categorically does not deal with issues of unobserved heterogeneity. A finite mixture model is also estimated. Generally a well-thought-through analysis. However, there is a reliance on statistical significance here. I know I do bang on about statistical significance a lot, but it is widely used inappropriately. A rule of thumb I’ve adopted for reviewing papers for journals is that if the conclusions would change if you changed the statistical significance threshold then there’s probably an issue. This article would fail that test. They use a threshold of p<0.10 which seems inappropriate for an analysis with a sample size in the tens of thousands and they build a concluding narrative around what is and isn’t statistically significant. This is not to detract from the analysis, merely its interpretation. In future, this could be helped by banning asterisks in tables, like the AER has done, or better yet developing submission guidelines around its use.

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Sam Watson’s journal round-up for Monday 20th August 2018

Every Monday our authors provide a round-up of some of the most recently published peer reviewed articles from the field. We don’t cover everything, or even what’s most important – just a few papers that have interested the author. Visit our Resources page for links to more journals or follow the HealthEconBot. If you’d like to write one of our weekly journal round-ups, get in touch.

A Randomized Trial of Epinephrine in Out-of-Hospital Cardiac Arrest. New England Journal of Medicine. Published July 2018.

Adrenaline (epinephrine) is often administered to patients in cardiac arrest in order to increase blood flow and improve heart rhythm. However, there had been some concern about the potential adverse effects of using adrenaline, and a placebo controlled trial was called for. This article presents the findings of this trial. While there is little economics in this article, it is an interesting example of what I believe to be erroneous causal thinking, especially in the way it was reported in the media. For example, The Guardian‘s headline was,

Routine treatment for cardiac arrest doubles risk of brain damage – study

while The Telegraph went for the even more inflammatory

Cardiac arrest resuscitation drug has needlessly brain-damaged thousands

But what did the study itself say about their findings:

the use of epinephrine during resuscitation for out-of-hospital cardiac arrest resulted in a significantly higher rate of survival at 30 days than the use of placebo. […] although the rate of survival was slightly better, the trial did not show evidence of a between-group difference in the rate of survival with a favorable neurologic outcome. This result was explained by a higher proportion of patients who survived with severe neurologic disability in the epinephrine group.

Clearly, a slightly more nuanced view, but nevertheless it leaves room for the implication that the adrenaline is causing the neurological damage. Indeed the authors go on to say that “the use of epinephrine did not improve neurologic outcome.” But a counterfactual view of causation should lead us to ask what would have happened to those who survived with brain damage had they not been given adrenaline.

We have a competing risks set up: (A) survival with favourable neurologic outcome, (B) survival with neurologic impairment, and (C) death. The proportion of patients with outcome (A) was slightly higher in the adrenaline group (although not statistically significant so apparently no effect eyes roll), the proportion of patients with outcome (B) was a lot higher in the adrenaline group, and the proportion of patients with outcome (C) was lower in the adrenaline group. This all suggests to me that the adrenaline caused patients who would have otherwise died to mostly survive with brain damage, and a few to survive impairment free, not that adrenaline caused those who would have otherwise been fine to have brain damage. So the question in response to the above quotes is then, is death a preferable neurologic outcome to brain damage? As trite as this may sound, it is a key health economics question – how do we value these health states?

Incentivizing Safer Sexual Behavior: Evidence from a Lottery Experiment on HIV Prevention. American Economic Review: Applied Economics. [RePEcPublished July 2018. 

This article presents a randomised trial testing an interesting idea. People who are at high risk of HIV and other sexually transmitted infections (STIs) and often those who engage in riskier sexual behaviour. A basic decision theoretic conception would be that those individuals don’t consider the costs to be high enough relative to the benefits (although there is clearly some divide between this explanation and how people actually think in terms of risky sexual behaviour, much like any other seemingly irrational behaviour). Conditional cash transfers can change the balance of the decision to incentivise people to act differently, what this study looks at is using a conditional lottery with the chance of high winnings instead, since this should be more attractive still to risk-seeking individuals. While the trial was designed to reduce HIV prevalance, entry into the lottery in the treatment arm was conditional on being free of two curable STIs at each round – this enabled people who fail to be eligible again, and also allowed the entry of HIV-positive individuals whose sexual behaviour is perhaps the most important to reducing HIV transmission. The lottery arm of the trial was found to have 20% lower incidence over the study period compared to the control arm – quite impressive. However, the cost-effectiveness of the program was estimated to be $882 per HIV infection averted on the basis of lottery payments alone, and around $3,300 per case averted all in. This seems quite high to me. Despite a plethora of non-comparable outcomes in cost-effectiveness studies of HIV public health interventions other studies have reported costs per cases averted an order of magnitude lower than this. The conclusions seems to be then that the idea works well – it’s just too costly to be of much use.

Monitoring equity in universal health coverage with essential services for neglected tropical diseases: an analysis of data reported for five diseases in 123 countries over 9 years. The Lancet: Global Health. [PubMedPublished July 2018. 

Universal health coverage (UHC) is one the key parts of Sustainable Development Goal (SDG) 3, good health and well-being. The text of the SDG identifies UHC as being about access to services – but this word “access” in the context of health care is often vague and nebulous. Many people mistakenly treat access to health services as synonymous with use of health services, but having access to something is not dependent on whether you actually use it or not. Barriers to a person’s ability to use health care for a given complaint are numerous: financial cost, time cost, lack of education, language barrier, and so forth. It is therefore difficult to quantify and measure access. Hogan and co-authors proposed an index to quantify and monitor UHC across the world that was derived from a number of proxies such as women with four or more antenatal visits, children with vaccines, blood pressure, and health worker density. Their work is useful but of course flawed – these proxies all capture something different, either access, use, or health outcomes – and it is unclear that they are all sensitive to the same underlying construct. Needless to say, we should still be able to diagnose access issues from some combination of these data. This article extends the work of Hogan et al to look at neglected tropical diseases, which affect over 1.5 billion, yet which are, obviously, neglected. The paper uses ‘preventative chemotherapy coverage’ as its key measure, which is the proportion of those needed the chemotherapy who actually receive it. This is a measure of use and not access (although they should be related), for example, there may be near universal availability of the chemotherapy, but various factors on the demand side limiting use. Needless to say, the measure should still be a useful diagnostic tool and it is interesting to see how much worse countries perform on this metric for neglected tropical diseases than general health care.

 

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