Different Strokes for Different Folks? Experimental Evidence on the Effectiveness of Input and Output Incentive Contracts for Health Care Providers with Varying Skills

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2021
Volume: 13
Issue: 4
Pages: 34-69

Authors (5)

Manoj Mohanan (Duke University) Katherine Donato (not in RePEc) Grant Miller (not in RePEc) Yulya Truskinovsky (not in RePEc) Marcos Vera-Hernández (University College London (UCL...)

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A central issue in designing incentive contracts is the decision to reward agents' input use versus outputs. The trade-off between risk and return to innovation in production can also lead agents with varying skill levels to perform differentially under different contracts. We study this issue experimentally, observing and verifying inputs and outputs in Indian maternity care. We find that both contract types achieve comparable reductions in postpartum hemorrhage rates, but payments for outputs were four times that of inputs. Providers with varying qualifications performed equivalently under input incentives, while providers with advanced qualifications may have performed better under output contracts.

Technical Details

RePEc Handle
repec:aea:aejapp:v:13:y:2021:i:4:p:34-69
Journal Field
General
Author Count
5
Added to Database
2026-01-26