American Economic Journal Applied Economics · 2014 · 126 citations · 28 references
We report an experiment in 3,000 villages that tested whether incentives improve aid efficacy. Villages received block grants for maternal and child health and education that incorporated relative performance incentives. Subdistricts were randomized into incentives, an otherwise identical program without incentives, or control. Incentives initially improved preventative health indicators, particularly in underdeveloped areas, and spending efficiency increased. While school enrollments improved overall, incentives had no differential impact on education, and incentive health effects diminished over time. Reductions in neonatal mortality in non-incentivized areas did not persist with incentives. We find no systematic scoring manipulation nor funding reallocation toward richer areas.
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Moral Hazard and Observability
Bengt Holmström · The Bell Journal of Economics · 1979 · 8.4K citations
Rank-Order Tournaments as Optimum Labor Contracts
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Fiscal Issue, Law, Fiscal Decentralization (Corporate Finance) +19