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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Keywords
Estimating Couples, Price Changes