This paper examines how physicians in China respond to a pay-for-performance scheme that mismeasures performance. In 2005, China imposed a policy that penalizes hospitals with high drug sale percentage in the total revenue, with the intent to decrease drug expenditure. Using a unique...

In 1999 the U.S. Agency for International Development introduced performance-based contracting in an effort to improve the effectiveness of some of Haiti's nongovernmental organizations in providing basic health services, such as immunization and prenatal and maternal care. These providers has...