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Designing Contracts for the Global Fund: Lessons from the Theory of Incentives - Working Paper 425

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  • Liam Wren-Lewis

Abstract

This paper uses contract theory to suggest simple contract designs that could be used by the Global Fund. Using a basic model of procurement, we lay out five alternative options and consider when each is likely to be most appropriate. The rest of the paper then discusses how one can build a realworld contract from these theoretical foundations, and how these contracts should be adapted to different contexts when the basic assumptions do not hold. Finally, we provide a synthesis of these various results with the aim of guiding policy makers as to when and how ‘results-based’ incentive contracts can be used in practice.

Suggested Citation

  • Liam Wren-Lewis, 2016. "Designing Contracts for the Global Fund: Lessons from the Theory of Incentives - Working Paper 425," Working Papers 425, Center for Global Development.
  • Handle: RePEc:cgd:wpaper:425
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    File URL: http://www.cgdev.org/publication/designing-contracts-global-fund-lessons-theory-incentives-working-paper-425
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    Keywords

    Contracts; Global Fund; contract theory; theory of incentives.;
    All these keywords.

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