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·Jun 8, 2026

Intergenerational Mobility in Late Qing Dynasty: Evidence from Northeast China

Kristina Butaeva, Steven Durlauf, and Alexander Shapoval
Topics: Economic Mobility & Poverty
BFI Working Paper·Mar 20, 2026

Physician Competition: Entry and Substitution

Joshua Gottlieb and Sean Nicholson
Topics: Employment & Wages, Health care
BFI Working Paper·Mar 20, 2026

Does Scarcity Tax Parents’ Minds?

Ariel Kalil and Mauricio Koechlin
Topics: Early Childhood Education, Economic Mobility & Poverty