Problem 3: Targeting Health Subsidies

Problem 3: Targeting Health Subsidies Pascaline Pupg>, Vivian Hoffmann, Michael Kremer, and Alix Peterson Zwane did a Randomized Controlled Trial (RCT) on ways of delivering chlorine tablets to treat water. They designed this experiment to address two issues that some public health systems have faced. First, they want to test whether those who need the product do receive it under each deliveryr mechanism: if there are people who aren't receiving it who should, this is called Secondly, they want to test if people who receive the tablets waste them by not using them correctly, which is called overinclusion. Both of these issues could happen under the same delivery mechanism. These issues of "targeting" are also crucial in distributing other health goods, such as insecticide-treated help prevent malaria. You have been asked by a policymaker in Kenya to evaluate the best way to distribute accounting for the trade-offs between eyegggbipuand overinclusion. (a) In two sentences or less, why should the policymaker care if there is in the provision of treated (that is, if those who need not receive them)? (b) In two sentences or less, why should they care if there is overinclusion (that is, if recipients don't use them correctly)?e