A central issue in designing performance incentive contracts is whether to reward the production of outputs versus use of inputs: the former rewards efficiency and innovation in production, while the latter imposes less risk on agents. Agents with varying levels of skill may perform better under...

We examine how the effects of incentivizing individuals to use healthcare depend on the capacity of the health system. We study a conditional cash transfer program (JSY) in India that paid women to give birth in medical facilities. We find that JSY doubled the number of deliveries for which the...

A central issue in designing performance incentive contracts is whether to reward the production of outputs versus use of inputs: the former rewards efficiency and innovation in production, while the latter imposes less risk on agents. Agents with varying levels of skill may perform better under...