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Submitted by Jeff Hammer on

Hi Salman,
Of course we need a "compared to what". Fortunately, that one's an easy one with lots of private goods with few externalities and not-particularly-well-targeted subsidies being provided by government that sanitation, with a growing body of evidence and obvious public good characteristics (particularly in cities) is very likely to beat. Getting rid of open defecation in rural areas is harder, of course, and we should study that - maybe even with experiments if appropriate. Check out www.riceinstitute.org for some of that evidence.
Jeff