CREB - Center for Research in Economics and Business

Outsourcing State Capacity: A field experiment in Pakistan

Project members:
Hamna Ahmed, Lahore School of Economics
Kate Vyborny,Duke University
Simon Quinn,University of Oxford

National Science Foundation (NSF) is providing funding for this project. This project builds on an existing initial stage of research for the project “Institutional capacity as an organizational challenge: A field experiment in Pakistan” carried out in collaboration with PPAF and IGC. The project involves a large donor organization and over 800 recipient community organizations across Pakistan. In this project, we explore (i) how each part of a large, complex organization (the donor) responds to new information on performance (of recipient community organizations) on KPIs; (ii) How the responses of both donor and recipients to new information and incentives relate to organizational characteristics of theoretical importance, including divergence of preferences between members of the organization; communication costs between parts of the organization; and decentralization of decision-making authority. The research team met in Oxford earlier this year and spent a considerable amount of time to finalize the design and pre-analysis plan for this component of the project. While it was originally envisioned to be an in-person experiment, the research team has now revised the design to allow the experiment to be conducted virtually. At the moment the instruments and protocols for the experiment are being updated to accommodate design revisions and the research team hopes to commence the experiment virtually by September 2020.