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Article Finance

Performance-Based Financing in Emergencies

R Research Team APR 13, 2026 11 Min Read
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Executive Summary

Identifies how traditional PBF designs can create perverse incentives during health emergencies and proposes responsive alternatives.

Key Analysis

Performance-based financing can backfire during crises if indicators are too rigid. We identify the four categories of perverse incentives: task substitution, data gaming, intrinsic motivation crowding, and indicator rigidity. Effective crisis financing requires indicators that adjust dynamically to shifting local needs.

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