Estimating Couples' Response to Price Changes in Contraceptives: Evidence from South Gondar Zone

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Date

2007-07

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A.A.U

Abstract

The paper has tried to investigate the potency of removing excessive contraceptive subsidy or introducing price on the probability of contraceptive use. Data has been collected from 300 active contraceptive clients in two districts of South Gondar zone using a standardized questionnaire. Clients were chosen through probability sampling technique by employing a hybrid of three stages stratified random sampling, simple random sampling and systematic random sampling tools. 11,e price that couples are willing to pay was drawn with a bidding game elicitation technique. The logistic binary choice model was used for analysis by incorporating all possible explanatory variables such as price, age of the woman and its square ( control variables), household income, women education, husbands ' agreement, number of children and side effect dummy. The finding has shown that neither price nor lower income deter the probability of contraceptive use. Couples overlook price and give more value to the continual availability of a range of alternative methods of contraceptives. Injectables and Norplant are n/Ore responsive to changes in price than the pill. Large number of children and husband's approval have positive and significant influence on the probability of using contraceptives. Free contraceptive users tend to undervalue the price and worth of contraceptives than those who get the service on payment schedules. As a result, there is a need to revise the current reproductive health and family panning program implementation scheme. The probability of contraceptive use is a positive function of price implying that the introduction of affordable price in the system and removal of excessive subsidy is vital to ensure better quality, accessibility and sustainability of family planning services. A range of contraceptive supplies should be emanated from the need of the immediate beneficiaries to secure continuity and keep wall/en's reproductive rights. Contemporary lEC materials should give due emphasis for the involvement of men and promotion of Fee spousal communication ill reproductive health matters.

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Estimating Couples, Price Changes

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