Distributing subsidized health products through existing health infrastructure could substantially and cost-effectively improve health in sub-Saharan Africa. There is, however, widespread concern that poor governance – in particular, limited health worker accountability – seriously undermines the effectiveness of subsidy programs. We audit targeted bednet distribution programs to quantify the extent of agency problems. We find that around 80% of the eligible receive the subsidy as intended, and up to 15% of subsidies are leaked to ineligible people. Supplementing the program with simple financial or monitoring incentives for health workers does not improve performance further and is thus not cost-effective in this context.

More on this topic

BFI Working Paper·Feb 10, 2026

Class Mobility in the Era of Rising Inequality: A Synthetic Dynasty Analysis

Geoffrey Wodtke, Weiqi Wang, Kristina Butaeva, and Steven Durlauf
Topics: Economic Mobility & Poverty
BFI Working Paper·Feb 2, 2026

The Macroeconomic Effects of Neighborhood Policies: a Dynamic Analysis

Alessandra Fogli, Veronica Guerrieri, Mark Ponder, and Marta Prato
Topics: Economic Mobility & Poverty
BFI Working Paper·Jan 26, 2026

Occupation-Specific Education Requirements and Occupational Silos: Evidence from CPA Licensing Rules

Anthony Le and Parth Shah
Topics: Economic Mobility & Poverty, Employment & Wages