David Levine | University of California, Berkeley (original) (raw)

Papers by David Levine

Environmental Research Letters, 2020

From 2016 to 2019, the Indian Pradhan Mantri Ujjwala Yojana (PMUY) distributed over 80 million li... more From 2016 to 2019, the Indian Pradhan Mantri Ujjwala Yojana (PMUY) distributed over 80 million liquefied petroleum gas (LPG) stoves, making it the largest clean cooking program ever. Yet, evidence shows widespread continued use of the traditional chulha, negating the potential health benefits of LPG. Here we use semi-structured interviews with female and male adults to understand the drivers of LPG usage in Mulbagal, Karnataka, the site of a proto-PMUY program. We find that respondents perceive the main value of LPG to be saving time, rather than better health. We also find that norms of low female power in the household, in addition to costs, delay saving for and ordering LPG cylinder refills. Namely, female cooks controlled neither the money nor the mobile phone required to order a timely refill. These factors together contribute to the ‘refill gap’: the period of non-use between refilling cylinders, which may range from days to even months. Our work reveals how gender norms can a...

The Kenyan government estimates that 500 billion KES ($5 billion USD) are needed to achieve sanit... more The Kenyan government estimates that 500 billion KES ($5 billion USD) are needed to achieve sanitation coverage targets in urban areas by 2030. To finance these infrastructure improvements, the Ministry of Environment, Water, and Natural Resources is looking at various financing options, including private sector participation, foreign aid, and cross-subsidies. Using a double-bound dichotomous choice method coupled with qualitative interviews, this study investigated willingness to pay for a pro-poor sanitation surcharge among customers of two Kenyan water utilities. 75% of respondents were willing to pay a surcharge, with just over half willing to pay up to 100 KES ($1 USD) per month. The primary determinants of willingness to pay were trust in the water utility to manage the pro-poor surcharge, feelings of solidarity towards people living without sanitation, and satisfaction with current water services.

Health Policy and Planning, 2021

Community health workers (CHWs) are a vital part of the health infrastructure in Uganda and in ma... more Community health workers (CHWs) are a vital part of the health infrastructure in Uganda and in many other low- and middle-income countries. While the need for CHWs is clear, it is less clear how they should dispense health products to maximize the health benefits to their community. In this study, we assess the cost-effectiveness of several competing CHW distribution strategies in the context of treatment for child diarrhoea. We used data from a four-armed cluster-randomized controlled trial to assess the cost-effectiveness of (1) free distribution of oral rehydration salts (ORS) via home deliveries prior to diarrhoea onset (free delivery arm), (2) free distribution via vouchers where households retrieved the treatment from a central location (voucher arm), (3) a door-to-door sales model (home sales arm) and (4) a control arm where CHWs carried out their activities as normal. We assessed the cost-effectiveness from the implementor’s perspective and a societal perspective in terms of...

World Development Perspectives, 2020

Small farmers in sub-Saharan Africa tend to use few purchased inputs, such as fertilizer. Candida... more Small farmers in sub-Saharan Africa tend to use few purchased inputs, such as fertilizer. Candidate explanations include farmer's lack of liquidity and risk aversion, limited availability of fertilizer in the market, lack of training of farmers in fertilizer use, and the risk of farmers purchasing counterfeit fertilizer. We tested a risk-free sales offer that addresses all of these constraints, and that allows for learning through farmer experimentation. Farmers received a small amount of fertilizer, and only paid if their harvest increased more than the cost of fertilizer. Farmers who paid would have the opportunity to place a second order with an upfront payment and free delivery. Results from our randomized trial in Mityana district in Uganda, showed that the risk-free sales offer increased acceptance rates for fertilizer use by over 40 percentage points relative to the control group that received a traditional sales offer. Partial and full payment increased by 15 and 8 percentage points, respectively. But we find small and statistically insignificant effects of the risk-free sales offer on farmer repurchase of fertilizer, perhaps due to the drought and armyworm infestation in 2016. The 8% full repayment rate we saw is not enough to make this sales offer profitable, but it substantially increases the usage of fertilizer by farmers initially. Also, 34% full repayment (among those with profits) is promising enough; the offer deserves another test (ideally, with crop insurance built-in).

AEA Randomized Controlled Trials, 2019

The CEGA Working Paper Series showcases ongoing and completed research by faculty affiliates of t... more The CEGA Working Paper Series showcases ongoing and completed research by faculty affiliates of the Center. CEGA Working Papers employ rigorous evaluation techniques to measure the impact of large-scale social and economic development programs, and are intended to encourage discussion and feedback from the global development community.

Environment International, 2019

Household air pollution from the combustion of biomass and coal is estimated to cause approximate... more Household air pollution from the combustion of biomass and coal is estimated to cause approximately 780,000 premature deaths a year in India. The government has responded by promoting uptake of liquefied petroleum gas (LPG) by tens of millions of poor rural families. Many poor households with new LPG stoves, however, continue to partially use traditional smoky chulhas. Our primary objective was to evaluate three strategies to transition pregnant women in rural Maharashtra to exclusive use of LPG for cooking. We also measured reductions in kitchen concentrations of PM 2.5 before and after our interventions. Our core intervention was a free stove, 2 free LPG cylinders (one on loan until delivery), and repeated health messaging. We measured stove usage of both the traditional and intervention stoves until delivery. In households that received the core intervention, an average of 66% days had no indoor cooking on a chulha. In an adjacent area, we evaluated a conditional cash transfer (CCT) based on usage of LPG in addition to the core intervention. Results were less successful, due to challenges implementing the CCT. Pregnant women in a third nearby area received the core intervention plus a maximum of one 14.2 kg cylinder per month of free fuel. In their homes, 90% of days had no indoor cooking on a chulha. On average, exclusive LPG use decreased kitchen concentrations of PM 2.5 by approximately 85% (from 520 to 72 μg/m 3). 85% of participating households agreed to pay the deposit on the 2nd cylinder. This high purchase rate suggests they valued how the second cylinder permitted continuous LPG supply. A program to increase access to second cylinders may, thus, be a straightforward way to encourage use of clean fuels in rural areas. Information Bureau-Government of India-Cabinet Committee on Economic Affairs, 2018). It is one of the largest initiatives in history related to household energy. In India, a LPG "connection" means that a household is authorized to order LPG from the national distribution network. All household users with an annual income of < 1 million INR (approximately 14,000 USD) may buy up to 12 cylinders a year at a subsidized price (Ministry of Petroleum and Natural Gas Orders, n.d.) (approximately 500 INR, 7 USD, per 14.2 kg canister of fuel in August 2018 (Indian Oil Corporation, n.d.)). 1 Unsubsidized fuel costs vary from 750 to 850 INR or more and are set monthly based on international prices (Indian Oil

World Development, 2019

Most residents of the developing world do not have access to safely managed sanitation services, ... more Most residents of the developing world do not have access to safely managed sanitation services, and large financial investments are required to address this need. Here we evaluate surcharges on water/sewerage tariffs as an option for supporting these investments in low-income neighborhoods. We investigated willingness-to-pay (WTP) for a pro-poor sanitation surcharge among customers of two urban water utilities in Kenya. Applying qualitative and quantitative methods, we conducted semi-structured in-depth interviews, focus-group discussions, and a double-bounded contingent valuation method for measuring WTP. We varied scenarios quasi-experimentally to study the effects of messaging and surcharge characteristics and evaluated factors associated with WTP. Our study finds that mean WTP was 290 KES (USD 2.9) per month, about 8% of the average water bill; median WTP was 100 KES (USD 1). In a multivariate analysis, WTP was significantly higher among customers that were younger, wealthier, shared toilets, and had higher water bills. WTP was also higher among customers that trusted the utility and distrusted the county government. Of our randomized scenarios, only the bill type was found to significantly influence WTP; WTP was higher if the surcharge was presented as a proportion of the customers' last water bill vs a flat amount. Our findings suggest that in a sector that struggles to provide universal access to sanitation services, cross-subsidies may offer a means to support financing of safe sanitation for low-income households. These results indicate there are opportunities for cross-subsidies in urban Kenya that may be relevant for a wider understanding of surcharge payments that support basic services for low-income citizens.

SSRN Electronic Journal, 2017

In addressing the product adoption puzzle, the literature has focused primarily on demand-side ba... more In addressing the product adoption puzzle, the literature has focused primarily on demand-side barriers. In this paper, we attempt to address frictions on the supply side. In particular, we model the relationship between a producer or distributor and its vendors, where credit constraints and contract enforceability present challenges for distribution. We show that providing vendors with an initial endowment of the good and the option to buy additional units at a fixed price is an optimal way in which to overcome these frictions. The arrangement is straightforward to implement and is optimal both for non-profit organizations with limited resources and for profitmaximizing firms. We test the arrangement using a field experiment in rural Uganda. We find that the optimal arrangement increases sales by 3-4 times compared to a standard fixed-price contract. * We would like to thank Peter DeMarzo, Andy Skrzypacz, Steve Tadelis, and Rob Townsend for useful suggestions. We have also benefited from comments from seminar participants at Berkeley, Stanford and the Munich Relational Contracts Conference. We gratefully acknowledge financial support from the Clausen Center, the Gartwood Center for Corporate Innovation, the Hellman Family Faculty Fund, the Committee on Research at Berkeley and the generous donors of our Indiegogo funding campaign. Vastinah Kemigisha, Norma Altshuler, and Ross Green provided excellent research assistance.

Journal of Economic Behavior & Organization, 2015

Smoke from inefficient biomass cookstoves contributes to global climate change and kills approxim... more Smoke from inefficient biomass cookstoves contributes to global climate change and kills approximately four million people per year. Cooking technologies, such as manufactured fuel-efficient cookstoves, that mitigate the negative effects of traditional cookstoves exist, but adoption rates are low. The international development community debates whether this low adoption of fuel-efficient cookstoves is due to a lack of adequate product information or due to household financial constraints. We ran Vickery second-price auctions in rural Uganda to elicit willingness to pay for fuel-efficient cookstoves, comparing the effect of informational marketing messages and time payments on willingness to pay. A randomized trial tested the following marketing messages: "This stove can improve health," "This stove can save time and money," and both messages combined. None of the messages consistently increased willingness to pay. In a second experiment we compared willingness to pay for two different contracts, one with payment due within a week and one with equal installment payments over 4 weeks. Consistent with household financial constraints, time payments raised willingness to pay by 40%.

Many managers are frustrated by a bewildering array of advice about what works in the workplace. ... more Many managers are frustrated by a bewildering array of advice about what works in the workplace. This volume contributes to a growing consensus about effective workplace practices. The collection combines detailed studies of single industries (automobile assembly, apparel, and machine tools) with cross-industry studies of financial performance. Compared to most past investigations, the research here has better measures of both workplace practices and organizational performance. The contributors find that systems of innovative human resource management practices can have large effects on business performance. Success does not come from any single innovation, but from a coherent system encompassing pay, training, and employee involvement. Although a majority of contemporary US businesses now have adopted some innovative work practices, only a small percentage of businesses have adopted a coherent new system. A concluding chapter outlines barriers to diffusion and discusses public policies to remove barriers and enhance dissemination of effective management.

Corporate responsibility has gone global. It has secured the attention of business leaders, gover... more Corporate responsibility has gone global. It has secured the attention of business leaders, governments and NGOs to an unprecedented extent. Increasingly, it is argued that business must play a constructive role in addressing massive global challenges. Business is not responsible for causing most of the problems associated with, for example, extreme poverty and hunger, child mortality and HIV/AIDS. However, it is often claimed that business has a responsibility to help ameliorate many of these problems and, indeed, it may be the only institution capable of effectively addressing some of them. Global Challenges in Responsible Business addresses the implications for business of corporate responsibility in the context of globalization and the social and environmental problems we face today. Featuring research from Europe, North America, Asia and Africa, it focuses on three major themes: embedding corporate responsibility, corporate responsibility and marketing, and corporate responsibi...

SSRN Electronic Journal, 2011

Convincing people to adopt preventive health behaviors consistently is difficult, yet many lives ... more Convincing people to adopt preventive health behaviors consistently is difficult, yet many lives could be saved if we understood better how to do so. For example, low-cost point-of-use (POU) technologies such as chlorine and filters can substantially reduce diarrheal disease (Clasen et al. 2006). Nonetheless, they are not widely or consistently used anywhere in the developing world, even when widely available. We ran a randomized field study in Kenya in which households received free POU products to test the importance of informational and behavioral constraints on usage. Sharing information about local water quality increases water treatment by 7-10 percentage points (11-24%) above that achieved by providing free products. Persuasive social marketing messages that harness findings from behavioral economics increase water treatment by an additional 9-11 percentage points. These results suggest promising avenues for incremental improvements in encouraging water treatment (and possibly other preventive health) behaviors. However, repeated exposures may be necessary to sustain behavior change.

Industrial and Labor Relations Review, 1999

Interviews with employees of a large, high-technology company reveal that computer-mediated commu... more Interviews with employees of a large, high-technology company reveal that computer-mediated communication (CMC) enhanced voice, defined as employees' ability to express their views and to participate in decision-making. The authors explore how two unique features of CMC enhanced voice. First, computer-mediated discussions were broadcast company-wide. Second, CMC facilitated employees' efforts to form interest groups. The authors analyze several examples of the expression of voice, including employees' response to distributive issues (a profit-sharing plan, for instance) and non-distributive policies (such as changing pay periods). They extend previous analyses by focusing on cases in which employees were trying to change management policies and by documenting the mechanisms by which computer-mediated voice operated and how it affected company policy.

Environmental Science & Technology, 2012

Low-cost point-of-use (POU) safe water products have the potential to reduce waterborne illness, ... more Low-cost point-of-use (POU) safe water products have the potential to reduce waterborne illness, but adoption by the global poor remains low. We performed an eight-month randomized trial of four lowcost household water treatment products in Dhaka, Bangladesh. Intervention households (n = 600) received repeated educational messages about the importance of drinking safe water along with consecutive twomonth free trials with each of four POU products in random order. Households randomly assigned to the control group (n = 200) did not receive free products or repeated educational messages. Households' willingness to pay for these products was quite low on average (as measured by bids in an incentive-compatible real-money auction), although a modest share was willing to pay the actual or expected retail price for low-cost chlorine-based products. Furthermore, contrary to our hypotheses that both one's own personal experience and the influence of one's peers would increase consumers' willingness to pay, direct experience significantly decreased mean bids by 18−55% for three of the four products and had no discernible effect on the fourth. Neighbor experience also did not increase bids. Widespread dissemination of safe water products is unlikely until we better understand the preferences and aspirations of these at-risk populations.

Using data from a large U.S. retail firm, we examine how differences in race, age, and gender bet... more Using data from a large U.S. retail firm, we examine how differences in race, age, and gender between a manager and a subordinate affect the subordinate's rate of quits, dismissals, and promotions. We find that these demographic differences can have statistically significant and sometimes large effects on employment outcomes. This is especially true of differences in race and ethnicity, which consistently produce significant effects and which produce the largest effects. In general, demographic differences tend to produce adverse effects on employment outcomes (i.e., higher quit and dismissal rates, and lower promotion rates). But in three striking cases, where traditionally lower-status managers are supervising traditionally higher-status employees, differences produce favorable effects for employees.

Administrative Science Quarterly, 1998

Page 1. HOW BUSINESS AND EMPLOYEES CAN WIN BOTH Page 2. Page 3. Reinventing the Workplace Page 4.... more Page 1. HOW BUSINESS AND EMPLOYEES CAN WIN BOTH Page 2. Page 3. Reinventing the Workplace Page 4. Page 5. Reinventing the Workplace How Business and Employees Can Both Win David I. Levine THE BROOKINGS INSTITUTION Washington, DC Page 6. ...

A standard test for adverse selection in health insurance examines whether people with characteri... more A standard test for adverse selection in health insurance examines whether people with characteristics predicting high health care utilization are more likely to buy insurance (or buy more generous insurance). George Akerlof's theory of adverse selection suggests a test based on prices: those who purchase insurance at the regular price will have higher expected utilization than those buying insurance when offered a deeply discounted price. Both tests provide (different) lower bounds on self-selection. We use a randomly allocated coupon for deeply discounted health insurance in rural Cambodia coupled with a longitudinal survey to test for adverse selection. While the standard test can show only a small amount of self-selection, the Prices test shows vastly more self-selection-providing a much more informative lower bound.

Development Engineering, 2016

In many randomized trials, subjects enter the sample sequentially. Because the covariates for all... more In many randomized trials, subjects enter the sample sequentially. Because the covariates for all units are not known in advance, standard methods of stratification do not apply. We describe and assess the method of D A-optimal sequential allocation (Atkinson, 1982) for balancing stratification covariates across treatment arms. We provide simulation evidence that the method can provide substantial improvements in precision over commonly-employed alternatives. We also describe our experience implementing the method in a field trial of a clean water and handwashing intervention in Dhaka, Bangladesh, the first time the method has been used. We provide advice and software for future researchers.

Low rates of adoption of and low willingness to pay for preventative health technologies pose an ... more Low rates of adoption of and low willingness to pay for preventative health technologies pose an ongoing puzzle. In the case of water-borne disease, the burden is high both in terms of poor health and cost of treatment. Inexpensive preventative technologies are available, but willingness to pay (WTP) for products such as chlorine treatment or ceramic filters has been observed to be low in a number of contexts. In this paper, we investigate whether time payments (micro-loans or dedicated micro-savings) can increase WTP for a high-quality ceramic water filter among 400 households in slums of Dhaka, Bangladesh, where water quality is poor and the burden of water-borne disease high. We use a modified Becker-Degroot-Marschak mechanism to elicit WTP for the filter under a variety of payment plans. Crucially, we obtain valuations from each household across all payment plans, which (a) increases power and (b) allows us to investigate the mechanisms behind differences in WTP across plans. We find that time payments significantly increase WTP: median WTP under a lump-sum, up-front payment is USD 9.30, versus USD 17 with a simple 6-month loan and USD 20 for an up to 12-month loan. Similarly, coverage can be greatly increased: at an unsubsidized price of USD 28 (50% subsidy price of USD 14), coverage is 12% (27%) under a lump-sum but as high as 45% (71%) given time payments. Many explanations are consistent with these reduced-form results. In ongoing work, we use our rich withinhousehold WTP data, the design of the payment plans, and a simple structural model of time preference to investigate the mechanisms at work behind these large differences in WTP. In particular, we measure the relative importance of credit constraints, time-preferences and the risk associated with a new technology.