Fiscal externalities and underinvestment in early-life human capital: Optimal policy instruments for a developing country
研究了印度产妇营养投资不足的矫正政策，发现最优补贴虽大，但通过公共投资监测营养并实施目标激励能带来更大福利收益。
We study policy instruments to correct inefficiently low investment in maternal nutrition in India, where one-fifth of all births occur. We focus on fiscal externalities: healthier babies become more productive adults, who pay more tax. However, parents do not internalize this externality, which, combined with other distortions, results in mothers weighing too little during pregnancy. We calibrate the first sufficient-statistics policy model for the quantitatively important case of fiscal externalities and maternal nutrition in developing countries. The optimal subsidy is large. Yet, welfare gains are even greater from public investment in state capacity to monitor nutrition, enabling targetted incentives. • We study policy instruments to correct low investment in maternal nutrition in India. • Focus on fiscal externalities: healthier babies become more productive adults. • Parents do not internalize externality; mothers weigh too little during pregnancy. • The optimal maternal nutrition subsidy is large. • Even larger welfare gains from including award for meeting threshold weight.