Notes from the field: The danger of programs that pay for performance | Impact Evaluations

Notes from the field: The danger of programs that pay for performance | Impact Evaluations: "The problems arise if we are trying to learn something, in a rigorous (i.e. impact evaluation) fashion.   The first problem is that this, in some cases, can discourage innovation and risk taking in programs.   If my contract says that I have to reach 10,000 firms with a certain set of information and I have a way to reach the firms that has worked in the past, I'll go with that, even if there are some innovative but unproven potential cheaper ways.
 
The second problem is that if the contract pays the implementer for "performance" then the deck is stacked against a rigorous evaluation.  Impact evaluations are rarely costless for the implementer; things such as needing to recruit or identify a control group, implementation delays due to survey rounds, and the like can add to the cost of program implementation (I discussed these costs in more detail in an earlier post).   And if the implementer has to reach a target they would prefer to put all of their cash towards that.   Or, if they're a for-profit firm, they definitely won't want to cut into those profits to produce the public good that is impact evaluation."



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