Paraguay had a malaria eradication program in 1968, which led to malaria prevalence to drop to effectively 0% by 1971. W

[answerhappygod]

Paraguay had a malaria eradication program in 1968, which led to
malaria prevalence to
drop to effectively 0% by 1971. We want to estimate the effect
of malaria prevalence on
years of schooling and literacy. Suppose the average schooling
of individuals born before
1968 is 5.8 years in malarious regions of Paraguay while it is
7.5 years in non-malarious
regions. The years of schooling for cohorts born after 1971 is
6.2 and 7.5 years in the
malarious and non-malarious regions, respectively.
(a) (8 points) Several studies of the effect of disease on
development use a difference-in-difference identification strategy
in contexts with a rapid eradication of a disease.
i. What is the significance of a rapid fall in the level of
disease?
ii. In this study researchers assume that the “treatment
intensity” depends on pre-campaign malaria prevalence.
Explain.
iii. What assumption are the researchers making about trends in
different areas of Paraguay. How can they check this
assumption?
(b)(4 points) Calculate the effect of malaria prevalence on
level of schooling in Paraguay.
(c) (5 points) What are some explanations for why individuals in
poor contexts do not make sufficient use of preventive health
technologies like mosquito prevention or chorine tablets for
clean drinking water?