Allocation Rules for Global Donors.
File(s)ldf7.pdf (782.54 KB)
Accepted version
Author(s)
Morton, Alec
Arulselvan, Ashwin
Thomas, RA
Type
Journal Article
Abstract
In recent years, donors such as the Bill and Melinda Gates Foundation have made an enormous contribution to the reduction of the global burden of disease. It has been argued that such donors should prioritise interventions based on their cost-effectiveness, that is to say, the ratio of costs to benefits. Against this, we argue that the donor should fund not the most cost-effective interventions, but rather interventions which are just cost-ineffective for the country, thus encouraging the country to contribute its own domestic resources to the fight against disease. We demonstrate that our proposed algorithm can be justified within the context of a model of the problem as a leader-follower game, in which a donor chooses to subsidise interventions which are implemented by a country. We argue that the decision rule we propose provides a basis for the allocation of aid money which is efficient, fair and sustainable.
Date Issued
2018-02-12
Date Acceptance
2018-02-02
Citation
Journal of Health Economics, 2018, 58, pp.67-75
ISSN
0167-6296
Publisher
Elsevier
Start Page
67
End Page
75
Journal / Book Title
Journal of Health Economics
Volume
58
Copyright Statement
© 2018, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Subjects
1402 Applied Economics
1117 Public Health And Health Services
Health Policy & Services
Publication Status
Published
Date Publish Online
2018-02-08