IDEAS home Printed from
   My bibliography  Save this paper

How to Pay “Cash-on-Delivery” for HIV Infections Averted: Two Measurement Approaches and Ten Payout Functions


  • Timothy B. Hallett and Mead Over


In contrast to current donor policy, which funds a recipient country’s national AIDS control program, this paper proposes a measurement strategy to enable a donor to reward a recipient country’s success at HIV prevention, irrespective of the inputs, activities, or who gets the credit. In accordance with the “cash-on-delivery” model of foreign assistance, the objective is not to replace traditional input- or activity-oriented aid, but to complement it by enhancing the motivation for local actors and their partners (including the traditional bilateral and multilateral funding agencies and their agents) to achieve measurable reductions in the rate of new HIV infections. This paper proposes two approaches to measuring the number of HIV infections averted between a baseline survey and a follow-up survey and explores the properties of ten alternative “payout functions” which would link measured epidemic changes to the size of the reward to be paid. All measurement approaches include the possibility of statistical error and thus a risk of rewarding the country too little or too much. This risk depends on the initial rate of infection and on HIV prevention success and can be reduced by either increasing the survey sample size or increasing the interval between surveys. By negotiating in advance the choice of one of these measurement approaches and one of a menu of payout functions, the donor and recipient agree on the recipient’s incentive structure with respect to the magnitude and precision of the estimated reduction in the rate of new infection.

Suggested Citation

  • Timothy B. Hallett and Mead Over, 2010. "How to Pay “Cash-on-Delivery” for HIV Infections Averted: Two Measurement Approaches and Ten Payout Functions," Working Papers 210, Center for Global Development.
  • Handle: RePEc:cgd:wpaper:210

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. de Araujo, Pedro & Murray, James, 2015. "A life insurance deterrent to risky behavior in Africa," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 548-576.
    2. William D. Savedoff, Katherine Douglas Martel, 2011. " Cash On Delivery Aid for Health: What Indicators Would Work Best- Working Paper 275," Working Papers 275, Center for Global Development.

    More about this item


    HIV; AIDS; cash-on-delivery; foreign assistance; outputs; payout functions;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cgd:wpaper:210. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publications Manager). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.