This article published in the American Economic Journal shows that costs of adjustment as opposed to low perceived value may explain why improved quality care practices diffuse slowly in the medical industry. Temporary financial incentives through a PBF in Argentina raised the rate of prenatal care by 34% during the incentive, and the improvement lasted at least two years after the end of payments.

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Author/s: Pablo A. Celhay, Paul J. Gertler, Paula Giovagnoli, and Christel Vermeersch
Date of Publication: July 2019

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