With rigorous economic research and practical policy solutions, we focus on the issues and institutions that are critical to global development. Explore our core themes and topics to learn more about our work.
In timely and incisive analysis, our experts parse the latest development news and devise practical solutions to new and emerging challenges. Our events convene the top thinkers and doers in global development.
Featuring Marcos Vera-Hernández
Senior Lecturer, University College London
Hosted by Victoria Fan
Research Fellow, Center for Global Development
The quality of health services in many developing countries is poor, traditionally leading to calls for greater resources to be devoted to service provision. To better align provider incentives with patient and population health, policymakers are increasingly using pay-for-performance schemes to improve health service delivery.
At this CGD seminar, Marcos Vera-Hernández will discuss research comparing the use of budget resources and incentives for reductions in student anemia across 130 Chinese rural primary schools. In this context, findings show that increasing budget resources is modestly more effective than using incentives (although incentives may be more cost-effective). The two interventions function as substitutes – and strikingly, anemia reductions are smaller when incentives and budget supplements are combined than under budget supplements alone. Despite increasing policy interest in performance-based financing, these findings demonstrate limitations in its use and highlight the importance of considering context.