Robert M. La Follette School of Public Affairs

The MCC Incentive Effect: Quantifying Incentives for Policy Change in an Ex-Post Rewards System

The Millennium Challenge Corporation, an independent U.S. foreign aid agency, uses an ex-post rewards system to determine potential eligibility for funding. When countries change policies specifically to meet MCC eligibility requirements, the "MCC incentive effect" has occurred. In a comprehensive and transparent quantitative study of that effect, the authors conclude the quantitative evidence is not strong enough to support the existence of the MCC incentive. Their study provides new insight and perspectives on how the effect should be studied. Presentation slides. Award-winning poster prepared for American Association for Budget and Program Analysis symposium

Additional Info

  • Volume or issue no.: Workshop in International Public in Spring 2013Affairs, Public Affairs 860, taught by Melanie Manion
  • Author(s): Ingrid Aune, Yanyan Chen, Christina Miller, and Joshua Williams
  • Client Name: the Millennium Challenge Corporation