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Institutional Solutions to the Asymmetric Information Problem in Health and Development Services for the Poor

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  • Leonard, David K.
  • Bloom, Gerald
  • Hanson, Kara
  • O’Farrell, Juan
  • Spicer, Neil

Abstract

The world’s poorest pay for professional services and thus are in a “market,” whether the services are provided in the public or private sectors. The associated problems of unequal information are particularly acute in undergoverned countries, where state regulation is weak. We systematically review the evidence on solutions to these problems in a variety of professions. Payments by clients are more likely to have a positive effect on quality if they are made through locally-managed organizations rather than directly to individual practitioners, particularly if those organizations have an institutionalized history of other—regarding values and incorporate client participation.

Suggested Citation

  • Leonard, David K. & Bloom, Gerald & Hanson, Kara & O’Farrell, Juan & Spicer, Neil, 2013. "Institutional Solutions to the Asymmetric Information Problem in Health and Development Services for the Poor," World Development, Elsevier, vol. 48(C), pages 71-87.
    • Handle: RePEc:eee:wdevel:v:48:y:2013:i:c:p:71-87
    DOI: 10.1016/j.worlddev.2013.04.003
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    7. Huynh, Cong Minh & Le, Quoc Nha, 2022. "A multi-dimensional free market and income inequality in developing Asia: How does the quality of governance matter?," MPRA Paper 112013, University Library of Munich, Germany.
    8. Iván Major, 2019. "Two-Sided Information Asymmetry in the Healthcare Industry," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(2), pages 177-193, May.
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