May 27, 2010
The Question
What are the welfare effects of subsidies for artemisinin combination therapies (ACTs)?
What we found
In the most plausible scenarios for malaria transmission, for drug-demand elasticities, and for evolution of drug resistance, large subsidies for ACTs improve welfare.
Why it matters
There are an estimated 2 million deaths from malaria each year. The source of the problem is increasing resistance to antimalarial. Artemisinin drugs, to which there is currently little or no resistance, are widely available. Combination therapies can increase the lifespan of artemisinins.
