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Improving last-mile service delivery using phone-based monitoring - Pubdocs.worldbank.org.
Improving last-mile service delivery using
          phone-based monitoring

Karthik Muralidharan1      Paul Niehaus1           Sandip Sukhtankar2

                          Jeff Weaver3

                          1 UC   San Diego
                      2 University   of Virginia
                3 University   of Southern California

                     February 11, 2021
Improving last-mile service delivery using phone-based monitoring - Pubdocs.worldbank.org.
Managing the last mile

     I Improving last mile public service delivery in developing
       countries is a recurring challenge
         I e.g. fraud, corruption, absenteeism, low effort
         I Likely to be large returns to improving personnel management
           in the public sector (Lemos, Muralidharan, and Scur 2021)

                          Monitoring Last-mile Service Delivery   February 11, 2021   2 / 38
Improving last-mile service delivery using phone-based monitoring - Pubdocs.worldbank.org.
Managing the last mile

     I Improving last mile public service delivery in developing
       countries is a recurring challenge
         I e.g. fraud, corruption, absenteeism, low effort
         I Likely to be large returns to improving personnel management
           in the public sector (Lemos, Muralidharan, and Scur 2021)

     I Key challenge: “can only manage what you can measure”,
       and measurement is a challenge
         I Hard to measure public sector performance generally, especially
           true in low capacity states
         I Massively scaled problem across many communities

                          Monitoring Last-mile Service Delivery   February 11, 2021   2 / 38
Existing approaches fall short

     I Internal reporting by lower layer bureaucrats susceptible to
       spin ond overstating performance or understating problems

     I Audits are costly, only applicable for some services, and
       provide data with significant lags

     I Feedback hotlines increasingly popular but underused and
       yield non-representative data

                          Monitoring Last-mile Service Delivery   February 11, 2021   3 / 38
Phone-based monitoring

     I Mobile phone penetration in low-income countries rose from
       1% in 2002 to 62% in 2017

     I We examine whether this general-purpose technology can be
       used to improve public sector performance
         I Call beneficiaries and ask about receipt of services
         I Leverage government databases of phone numbers and
           geographic information to match to individual bureaucrats

     I Provides channel to obtain quick, cheap, independent
       information about last-mile service delivery across sectors

     I Some governments have started using these systems (e.g.
       Pakistan’s Citizen Feedback Model)

                          Monitoring Last-mile Service Delivery   February 11, 2021   4 / 38
This paper

     I In 2018, the Indian state of Telangana created program to
       distribute $1.8 billion annually in lump-sum payments to 5.7
       million farmers

     I We worked with them to implement and evaluate a
       phone-based monitoring system

     I In a randomly selected set of 132 of 548 mandals, officials
       were informed that performance will be measured via calls to
       program beneficiaries

     I At-scale experiment in terms of implementation, outcome
       measurement, and unit of randomization

                         Monitoring Last-mile Service Delivery   February 11, 2021   5 / 38
Main results

     I Increased the rate of “on-time” delivery of transfers by 3.3%
       ($3.9 million dollars)

                         Monitoring Last-mile Service Delivery   February 11, 2021   6 / 38
Main results

     I Increased the rate of “on-time” delivery of transfers by 3.3%
       ($3.9 million dollars)
     I 7.6% reduction in number of farmers who did not get
       transfers (17,000 farmers)

                         Monitoring Last-mile Service Delivery   February 11, 2021   6 / 38
Main results

     I Increased the rate of “on-time” delivery of transfers by 3.3%
       ($3.9 million dollars)
     I 7.6% reduction in number of farmers who did not get
       transfers (17,000 farmers)
     I Progressive: biggest improvements among smallest farmers

                         Monitoring Last-mile Service Delivery   February 11, 2021   6 / 38
Main results

     I Increased the rate of “on-time” delivery of transfers by 3.3%
       ($3.9 million dollars)
     I 7.6% reduction in number of farmers who did not get
       transfers (17,000 farmers)
     I Progressive: biggest improvements among smallest farmers
     I Highly cost-effective: cost per dollar delivered of 3.6 cents;
       cost per dollar delivered on time was under 1 cent

                          Monitoring Last-mile Service Delivery   February 11, 2021   6 / 38
Main results

     I Increased the rate of “on-time” delivery of transfers by 3.3%
       ($3.9 million dollars)
     I 7.6% reduction in number of farmers who did not get
       transfers (17,000 farmers)
     I Progressive: biggest improvements among smallest farmers
     I Highly cost-effective: cost per dollar delivered of 3.6 cents;
       cost per dollar delivered on time was under 1 cent
     I Reasons to think these estimates are conservative as to the
       potential of phone-based monitoring more broadly

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Why is this exciting?
     I Solves many problems with collecting actionable performance
       information
          I   Independent source/difficult for targeted bureaucrat to disrupt
          I   Can scale across wide range of places, programs, and outcomes
          I   Information can be collected and processed in close to real-time
          I   Low fixed and variable costs to deploy

                            Monitoring Last-mile Service Delivery   February 11, 2021   7 / 38
Why is this exciting?
     I Solves many problems with collecting actionable performance
       information
          I   Independent source/difficult for targeted bureaucrat to disrupt
          I   Can scale across wide range of places, programs, and outcomes
          I   Information can be collected and processed in close to real-time
          I   Low fixed and variable costs to deploy

     I Top-down monitoring can be effective (Olken, 2007), but
       constrained by cost and difficulty of measurement
          I Phone-based monitoring increases feasibility of top-down
            approaches by reducing measurement costs

                            Monitoring Last-mile Service Delivery   February 11, 2021   7 / 38
Why is this exciting?
     I Solves many problems with collecting actionable performance
       information
          I   Independent source/difficult for targeted bureaucrat to disrupt
          I   Can scale across wide range of places, programs, and outcomes
          I   Information can be collected and processed in close to real-time
          I   Low fixed and variable costs to deploy

     I Top-down monitoring can be effective (Olken, 2007), but
       constrained by cost and difficulty of measurement
          I Phone-based monitoring increases feasibility of top-down
            approaches by reducing measurement costs

     I Very nimble evaluation
          I Study completed in 3 months (results); 6 months (paper)
          I Cost less than USD 50,000
          I Yet, done at scale - randomized across 5.7 million beneficiaries
            as part of scaled rollout

                            Monitoring Last-mile Service Delivery   February 11, 2021   7 / 38
Agenda

   Context

   Intervention

   Empirical Strategy

   Results
      Effects on program performance
      Tallying costs and benefits

   Conclusion

                        Monitoring Last-mile Service Delivery   February 11, 2021   7 / 38
Agenda

   Context

   Intervention

   Empirical Strategy

   Results
      Effects on program performance
      Tallying costs and benefits

   Conclusion

                        Monitoring Last-mile Service Delivery   February 11, 2021   7 / 38
Rythu Bandhu Scheme

    I Rythu Bandhu Scheme (RBS) launched in May 2018 to
      provide lump-sum, unconditional cash transfers to farmers
        I Rs. 4000 ($60) per acre to every landowning farmer in both
          cropping cycles
        I Transfers given as “order checks”, exchangeable for cash or
          deposits at designated banks
        I $1.8 billion to be disbursed annually (7% of state budget) to
          5.7 million farmers

    I Mandal (sub-district) agricultural officers (MAOs) were
      responsible for check distribution within their mandal(s)
        I Average mandal has 10,000 beneficiaries, 60,000 residents
        I MAOs organized distribution through meetings in each village
          to distribute the checks

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Rythu Bandhu Scheme

    I Many implementation concerns, particularly given the
      government of Telangana had never done this before
        I Non-delivery of checks to intended beneficiaries
        I Late delivery of checks, forcing farmers to take out loans for
          time-sensitive agricultural inputs and making it costly to get
          the check
        I Corruption during the distribution process

                         Monitoring Last-mile Service Delivery   February 11, 2021   9 / 38
Rythu Bandhu Scheme

                      Monitoring Last-mile Service Delivery   February 11, 2021   10 / 38
Rythu Bandhu Scheme

                      Monitoring Last-mile Service Delivery   February 11, 2021   11 / 38
Agenda

   Context

   Intervention

   Empirical Strategy

   Results
      Effects on program performance
      Tallying costs and benefits

   Conclusion

                        Monitoring Last-mile Service Delivery   February 11, 2021   11 / 38
Phone-based monitoring intervention

     I State government had collected phone numbers during land
       record digitization (3.5 million numbers, 61% of farmers)
     I Contracted private vendor to call random sample of farmers
         I Sampled 150 farmers per treatment mandal
         I Response rate of ∼ 48%
     I Calls collected information on:
         I   Whether and when farmers received their check
         I   Whether and when encashed check
         I   Problems receiving or encashing check
         I   Overall satisfaction with the program

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Phone-based monitoring intervention

     I Treatment MAOs were informed about intervention one week
       before distribution of cheques
         I Held video conference (90% attendance), sent letter with
           details (68% received)
         I Explained how the system worked, information to be collected
         I Informed that reports would be issued to them and supervisors
     I No explicit incentives based on these reports
     I Reports divided performance into: % Checks delivered, speed
       of receipt, satisfaction, encashment, corruption
         I Gives color-coded grade, raw statistics, and compared to
           district and state averages

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Intervention Report Card

        Category
                                                           In Mandal      District Average   State Average      Overall Rating

       Percent of Checks Recieved
                                                                                                                Fair

        Percent of Checks Delivered by May 20                                                                    Poor

        Percent of Satisfied Beneficiaries                                                                       Excellent

         Percent Successfully Encashed Check                                                                     Good

         Percent reporting corruption                                                                           Excellent

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Timeline of intervention

     I   Feb 28, 2018: Rythu Bandhu Scheme is announced
     I   April 1: Our first meeting with Government of Telangana
     I   May 2: Treatment MAOs informed of intervention
     I   May 8: Check distribution begins
     I   May 23: Half of checks distributed and encashed
     I   May 29 - June 15: Call center collects data
     I   June 15: ∼75% of checks had been distributed and encashed
     I   July 9: Reports sent to treatment MAOs and supervisors

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Agenda

   Context

   Intervention

   Empirical Strategy

   Results
      Effects on program performance
      Tallying costs and benefits

   Conclusion

                        Monitoring Last-mile Service Delivery   February 11, 2021   15 / 38
Opportunity to evaluate implementation at scale

     I Conducted evaluation in 30/31 districts of Telangana
       (excluding Hyderabad)
     I Randomized 548 mandals into 132 treatment (122 MAOs)
       and 416 control (376 MAOs), randomizing at the MAO level
     I Average mandal has ∼10,000 beneficiaries and ∼60,000
       residents
     I 1.3 million beneficiaries in treatment, 4.3 million beneficiaries
       in control
     I Estimates are representative at the state level (35 million
       residents)

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Geographic distribution of intervention

                                                                 Control
                                                                 Treatment

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Balance
                Control vs. Treatment on pre-determined characteristics

    Variable                                          Control mean       Treatment mean         Difference (SE)
    Land registry data
    Land size (acres)                                       2.21                2.18              -0.01 (0.05)
    Median land size                                        1.57                1.56               0.00 (0.05)
    Land size - 25th percentile                             0.65                0.66               0.02 (0.04)
    Land size - 75th percentile                             2.96                2.93              -0.03 (0.06)
    Registered mobile numbers                               0.61                0.61               0.01 (0.01)
    Farmer population                                      11345               10935               -249 (389)
    Census 2011 data
    Literacy rate                                           0.60                0.60             -0.00 (0.01)
    Share of rural population                               0.86                0.85              0.01 (0.02)
    Share of working population                             0.51                0.51              0.01 (0.00)
    Share of SC population                                  0.18                0.18             -0.00 (0.00)
    Share of ST population                                  0.13                0.14             0.02* (0.01)
    Share of irrigated land                                 0.52                0.51              -0.01(0.04)
    Share of electrified villages                           0.95                0.94              -0.02(0.02)
    Average village distance from Hyderabad                135.91              134.76              0.32(2.09)
    Observations                                            417                  131                  548
   Differences in column (3) are estimated through regressions on a treatment indicator, with fixed effects at the
   randomization strata level. Standard errors are clustered
                                          Monitoring         at the
                                                       Last-mile    MAODelivery
                                                                 Service level and reported inFebruary
                                                                                               parentheses.
                                                                                                       11, 2021    18 / 38
Balance
                Control vs. Treatment on pre-determined characteristics

    Variable                                           Control mean       Treatment mean        Difference (SE)
    Other Mandal characteristics
    Number of banks in mandal                               3.52                 4.12             -0.26 (0.35)
    Average distance to nearest ATM                        12.72                12.43             -0.18 (0.47)
    Share of HHs using banking services                     0.45                 0.43             -0.01 (0.02)
    Average distance to nearest bank                        7.51                 7.22             -0.15 (0.31)
    Share of villages with all-weather road                 0.91                 0.91              0.00 (0.01)
    Share of HHs owning mobile phones                       0.52                 0.50             -0.01 (0.01)
    Average rainfall in mandal 2013-17 (mm)                707.35               714.26            8.76 (10.19)
    MAO Characteristics
    Age of MAO                                              35.57               36.36              0.89 (0.77)
    Gender of MAO (Female = 1)                               0.30                0.33              0.02 (0.05)
    Number of SHC samples (2017)                           1030.01              961.11           -64.65 (54.10)
    No. of farmers covered by SHCs (2017)                  4470.67             4572.42           34.66 (251.47)
    SHC tests conducted (2017)                              976.04              924.91           -44.77 (52.32)
    SHCs produced (2017)                                   4176.72             4332.26           85.98 (240.81)
    Joint test (p-value)                                                                              (.225)
    Observations                                             417                  131                  548
   Differences in column (3) are estimated through regressions on a treatment indicator, with fixed effects at the
   randomization strata level. Standard errors are clustered
                                          Monitoring         at the
                                                       Last-mile    MAODelivery
                                                                 Service level and reported inFebruary
                                                                                               parentheses.
                                                                                                       11, 2021    19 / 38
Outcomes
    I The pre-registered primary outcomes of interest for the study
      were:
           I   Check Distribution and Encashment
           I   Speed of Check Distribution and Encashment
           I   Beneficiary Satisfaction
           I   Corruption

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Outcomes
    I The pre-registered primary outcomes of interest for the study
      were:
           I   Check Distribution and Encashment
           I   Speed of Check Distribution and Encashment
           I   Beneficiary Satisfaction
           I   Corruption

    I Program was very well implemented, limiting our ability to
      observe changes in the latter two outcomes
           I 92% of beneficiares were satisfied, corruption reported by only
             1.5%
           I 83% of checks were encashed, 69% encashed by June 8

    I Given the relatively successful implementation, estimates are
      likely conservative as to potential effects of phone-based
      monitoring

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Data

       I We primarily measure outcomes using administrative records:
           I Land register of all 5.7M landholders in the state
           I Individual-level bank records of check encashment for all 5.7M
             landholders: encashment status and date of encashment

       I Secondary sources:
           I Call center data (22,565 beneficiaries)
           I Data from a phone survey of 142 MAOs
           I Individual-level records of check distribution maintained by
             MAOs: distribution status and date of distribution
           I Soil Health Cards program information from 2016 to 2018

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Estimation

              yivmsd = α + βTmsd + δsd + γXivmsd + eivmsd

     I y is an outcome, T is an indicator for treatment assignment
       and X is pre-determined covariates
     I Indices denote individual i in village v in mandal m in stratum
       s in district d
     I δsd are randomization strata fixed effects
     I Standard errors are clustered at the level of randomization,
       i.e. MAO

                          Monitoring Last-mile Service Delivery   February 11, 2021   22 / 38
Agenda

   Context

   Intervention

   Empirical Strategy

   Results
      Effects on program performance
      Tallying costs and benefits

   Conclusion

                        Monitoring Last-mile Service Delivery   February 11, 2021   22 / 38
Treatment Effect On Encashment by Date

                                          .06
                                          .04
          Treatment Effect (βTreatment)
                                          .02
                                          0

                                                                                                   Coefficient
                                                                                                   95% Confidence interval
                                          -.02

                                                 07 May   28 May            18 Jun            09 Jul                    30 Jul
                                                                        Date of Encashment

                                                           Monitoring Last-mile Service Delivery                  February 11, 2021   23 / 38
Cumulative rates of encashment in treatment and control mandals

                                  .8
                                  .6
           % of Checks Encashed
                                  .4
                                  .2

                                                                                             Treatment mandals
                                                                                             Control mandals
                                  0

                                       07 May   28 May            18 Jun            09 Jul                     30 Jul

                                                 Monitoring Last-mile Service Delivery                February 11, 2021   24 / 38
On-Time Encashment

                             Encashed before                    Ever encashed
                                 June 8th
                             (1)          (2)                 (3)              (4)             (5)
                          Treatment Control                Treatment         Control           Obs.
                                        mean                                  mean
             Overall      0.0231∗∗∗      0.69                                               5,645,937
                          (0.00807)

   Outcome in header. All specifications include fixed effects at the randomization strata level. Standard errors are
   clustered at the MAO level and reported in parentheses.

                                         Monitoring Last-mile Service Delivery             February 11, 2021            25 / 38
On-Time Encashment

                               Encashed before                    Ever encashed
                                   June 8th
                               (1)          (2)                 (3)                (4)           (5)
                            Treatment Control                Treatment           Control         Obs.
                                          mean                                    mean
           Overall          0.0231∗∗∗      0.69                                               5,645,937
                            (0.00807)
           Land quartiles
           Quartile 1 0.0278∗∗∗                 0.52                                          1,449,482
                       (0.00960)
           Quartile 2 0.0248∗∗∗                 0.71                                          1,460,294
                       (0.00791)
           Quartile 3 0.0241∗∗∗                 0.76                                          1,443,788
                       (0.00755)
           Quartile 4 0.0208∗∗                  0.77                                          1,443,836
                       (0.00803)

   Outcome in header. All specifications include fixed effects at the randomization strata level. Standard errors are
   clustered at the MAO level and reported in parentheses.

                                         Monitoring Last-mile Service Delivery             February 11, 2021            26 / 38
On-Time Encashment

                               Encashed before                    Ever encashed
                                   June 8th
                               (1)          (2)                 (3)                (4)            (5)
                            Treatment Control                Treatment           Control          Obs.
                                          mean                                    mean
           Overall          0.0231∗∗∗      0.69               0.0126∗             0.83        5,645,937
                            (0.00807)                        (0.00655)
           Land quartiles
           Quartile 1 0.0278∗∗∗                 0.52                                          1,449,482
                       (0.00960)
           Quartile 2 0.0248∗∗∗                 0.71                                          1,460,294
                       (0.00791)
           Quartile 3 0.0241∗∗∗                 0.76                                          1,443,788
                       (0.00755)
           Quartile 4 0.0208∗∗                  0.77                                          1,443,836
                       (0.00803)

   Outcome in header. All specifications include fixed effects at the randomization strata level. Standard errors are
   clustered at the MAO level and reported in parentheses.

                                         Monitoring Last-mile Service Delivery             February 11, 2021            27 / 38
Encashment

                               Encashed before                    Ever encashed
                                   June 8th
                               (1)          (2)                 (3)                (4)            (5)
                            Treatment Control                Treatment           Control          Obs.
                                          mean                                    mean
           Overall          0.0231∗∗∗      0.69               0.0126∗             0.83        5,645,937
                            (0.00807)                        (0.00655)
           Land quartiles
           Quartile 1 0.0278∗∗∗                 0.52          0.0224∗∗            0.68        1,449,482
                       (0.00960)                             (0.00932)
           Quartile 2 0.0248∗∗∗                 0.71         0.0145∗∗∗            0.85        1,460,294
                       (0.00791)                             (0.00631)
           Quartile 3 0.0241∗∗∗                 0.76          0.0113∗             0.88        1,443,788
                       (0.00755)                             (0.00601)
           Quartile 4 0.0208∗∗                  0.77          0.00699             0.89        1,443,836
                       (0.00803)                             (0.00621)

   Outcome in header. All specifications include fixed effects at the randomization strata level. Standard errors are
   clustered at the MAO level and reported in parentheses.

                                         Monitoring Last-mile Service Delivery             February 11, 2021            28 / 38
Effect of intervention corresponding to encashment dates

        Treatment Effect (βTreatment)                    Land size Quartile 1                                                                 Land size Quartile 2

                                                                                             Treatment Effect (βTreatment)
                                        .06

                                                                                                                             .06
                                        .04

                                                                                                                             .04
                                        .02

                                                                                                                             .02
                                        0

                                                                                                                             0
                                        -.02

                                                                                                                             -.02
                                               01 May   01 Jun          01 Jul      01 Aug                                          01 May   01 Jun          01 Jul      01 Aug
                                                          Date of Encashment                                                                   Date of Encashment
                                                         Land size Quartile 3                                                                 Land size Quartile 4
        Treatment Effect (βTreatment)

                                                                                             Treatment Effect (βTreatment)
                                        .06

                                                                                                                             .06
                                        .04

                                                                                                                             .04
                                        .02

                                                                                                                             .02
                                        0

                                                                                                                             0
                                        -.02

                                                                                                                             -.02
                                               01 May   01 Jun          01 Jul      01 Aug                                          01 May   01 Jun          01 Jul      01 Aug
                                                          Date of Encashment                                                                   Date of Encashment

                                                                                   Coefficient
                                                                                   CI Upper/CI Lower

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Time to Encashment

                              Effects on distribution and encashment

                                                        Days till encashed
                                           (1)                 (2)                    (3)
                                        Treatment         Control mean            Observations
                      Overall             -0.759*              20.16               4,663,678
                                          (0.388)
                      Land quartiles
                      Quartile 1      -0.655                   23.99                984,251
                                     (0.511)
                      Quartile 2    -0.676*                    20.08               1,239,604
                                     (0.383)
                      Quartile 3 -0.842**                      18.71               1,278,096
                                     (0.359)
                      Quartile 4 -0.982***                     18.79               1,284,734
                                     (0.367)

   Outcome in header. Days elapsed before encashment (conditional on encashment) are counted from 8 May 2018.
   All specifications include fixed effects at the randomization strata level. Standard errors are clustered at the MAO
   level and reported in parentheses.
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Phone Ownership and Multi-tasking

     I We cannot reject that the treatment effect was the same for
       those with and without phones Go

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Phone Ownership and Multi-tasking

     I We cannot reject that the treatment effect was the same for
       those with and without phones Go
     I Concern that this may have led to worse performance on other
       tasks (multi-tasking): test for differences in performance on
       2018 production of “Soil Health Cards”

                          (1)                   (2)                         (3)                    (4)
                    Number of SHC        Number of farmers                                    SHCs available
                                                                   SHC tests conducted
                    samples entered       covered by SHCs                                       on portal
       Treatment         -43.54                  -138.8                    -26.55                  -124.9
                        (46.99)                 (205.7)                   (45.27)                 (203.4)
     Control Mean       906.02                  4259.53                   873.73                  3891.78
     Observations        512                      512                      512                      512

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Agreement between call center and administrative data

     I In long run, need call center data to be accurate to use for
       performance management
         I Unique opportunity to evaluate accuracy in this context due to
           administrative data
         I Agree in 88.6% of cases on whether farmer encashed check

     I Key is agreement in aggregate, MAO-level performance
       ratings
         I Relative performance of each pair (m, m0 ) of MAOs within a
           district
         I Determine whether relative ranking of a pair agrees across
           datasets
         I Accounting for sampling variation, disagreement in only 9% of
           pairs Go

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Agenda

   Context

   Intervention

   Empirical Strategy

   Results
      Effects on program performance
      Tallying costs and benefits

   Conclusion

                        Monitoring Last-mile Service Delivery   February 11, 2021   32 / 38
Cost-effectiveness: cost per incremental dollar delivered

     I ITT estimate: increased amount delivered on time by Rs. 203
       per farmer; amount ever delivered by Rs. 54 per farmer
     I Implies an additional ∼ 3.9 million USD delivered to farmers
       on time and ∼1 million USD delivered overall
     I Contract with call center cost GoTS $36,000
     I ⇒ cost per incremental dollar delivered was 3.6 cents

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Cost-effectiveness: cost per incremental dollar delivered

     I ITT estimate: increased amount delivered on time by Rs. 203
       per farmer; amount ever delivered by Rs. 54 per farmer
     I Implies an additional ∼ 3.9 million USD delivered to farmers
       on time and ∼1 million USD delivered overall
     I Contract with call center cost GoTS $36,000
     I ⇒ cost per incremental dollar delivered was 3.6 cents

     I If extended to the entire state and both crop cycles ⇒ $33.1
       million delivered on-time and $8.6 million more delivered
       annually

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Cost-benefit: overall welfare

     I As a second exercise, we price the value of getting capital to
       farmers during the planting season, instead of sitting with the
       gov’t
     I Assume 25% return for farmers (loan rate), 5% for
       government Go
     I Based on these parameters, we estimate that phone-based
       monitoring generated Rs. 10 million (∼$150,000) in benefits,
       roughly four times our (conservative) estimate of the cost.
       We reject the null of no benefit (p = 0.03)

                          Monitoring Last-mile Service Delivery   February 11, 2021   34 / 38
Interpretation

     I The estimates here are likely conservative in several senses
          I Scope for improvement was modest, given excellent
            performance in control (83% encashment)
          I Effect of measurement and light-touch accountability, but
            phone-based monitoring can also be used for
            information/alongside formal incentives
          I Already was a source of high-quality administrative data
          I “Incomplete” compliance, where some treated officials report
            being unsure they were treated MAO Survey

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Conclusion

     I Calling beneficiaries to measure their experiences was
       cost-effective at improving program performance

     I Approach can be applied to a wide-range of service delivery
       settings
         I Some examples of outbound call-centers, but inbound centers
           are far more common and often unused
         I Solves many problems with collecting actionable performance
           information
         I May increase feasibility of top-down monitoring by lowering
           cost
         I Flexibility to scale across wide range of place, programs, and
           outcomes, as well as adapt to new circumstances

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Next steps

     I Long-term, we are building a research and policy agenda
       around phone-based monitoring for public performance
       management

     I We have started testing phone-based monitoring in other
       settings
         I Testing across different states and sectors with greater scope
           for performance improvement
         I Measure incentive, informational, and selection effects
         I Build phone-based measurement into routinized functioning
           and tie outcomes systematically to personnel management
         I Test impacts of sharing information at different levels of
           government and the public

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Agreement in aggregate

       Agreement between phone and admin data on MAO performance

                                         (1)              (2)            (3)
                                                      Agreement
                                       Actual                        Residual dis-
                                                      rate from
                                     agreement                        agreement
                                                       sampling
                                        rate                             rate
                                                       variation
              Pair-wise order of
                                       68.6%             77.6%          9.0%
                   rankings
             Bottom 20% in PD
            found in bottom 20%        43.0%             61.7%          18.7%
                    of AD
             Bottom 20% in PD
            found in bottom 50%        83.0%             92.7%          9.7%
                    of AD

     Back

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Impacts across data sources

                       Comparing administrative and phone-survey data

                                                     Administrative data                       Phone data
                                         (1)            (2)          (3)            (4)            (5)
                                         All           With          With           With         Reached
                                                      phones       phones,        phones,
                                                                   sampled        reached
                Panel A: Distribution status
                Treatment            0.801             0.874         0.873         0.878           0.885
                Control              0.793             0.870         0.876         0.884           0.880
                   Difference         0.00901        0.00614       0.00384        0.00326        0.00389
                                     (0.00744)      (0.00609)     (0.00669)      (0.00719)      (0.00644)
                Panel B: Encashment status
                Treatment         0.657                0.727         0.731         0.743           0.757
                Control           0.630                0.700         0.711         0.732           0.754
                   Difference        0.0254***      0.0229**       0.0221*        0.0128         0.00204
                                     (0.00912)      (0.0101)       (0.0115)      (0.0115)        (0.0102)
                Observations         5,536,538      3,356,249       44,690         21,835         21,835

   Outcome variables reflect distribution and encashment status as of the date the call was made to the respondent.
   For respondents who were not called in the survey, the median date of calls made to their district is used as the
   cut-off date. All specifications include fixed effects at the randomization strata levels. Standard errors are clustered
   at MAO level and reported in parentheses.
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Cost-effectiveness analysis

     I We price the value of putting getting capital to farmers during
       the planting season, instead of letting it sit with the gov’t
     I Total value of a unit of capital held by the gov’t until time t
       and then by the farmer from time t until T is defined as

                               v (t ) = e rg t e rf (T −t )

        where rg is the return on capital held by the gov’t and rf is
        the interest rate on loans
     I Given a distribution F of check encashment dates, the total
       social value created is
                                             Z
                              W (F ) =           v (t )dF (t )

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Cost-effectiveness analysis

     I Based on these parameters, we estimate that phone-based
       monitoring generated Rs. 10 million (∼$150,000) in benefits,
       roughly four times our (conservative) estimate of the cost.
       We reject the null of no benefit (p = 0.03)

     I Estimated benefits are 0 by definition at T = 0 and then
       increase steadily as we increase T and exceed the costs of the
       intervention for any δ (difference between rf and rg ) after 5
       June

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Sensitivity of cost-effectiveness estimates

                    Cost-benefit vs. total time period (T )

      Back
MAO Survey

    I We surveyed 88 of 122 treatment MAOs, sample of 54 control
      MAOs Return
    I Incomplete adherence in treatment
        I 90% of treatment MAOs had heard of intervention
        I Only 28% were sure had been done in their area, 28% were
          unsure, 35% said had not
        I May be strategic misrepresentation, but suggests results are
          lower bound
    I Minimal contamination of the control group
        I 52% of control MAOs had heard about the intervention
        I But only 4% believed themselves treated, 8% were unsure

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Did Benefits Only Accrue to Those with Phones?

     I In general, we cannot reject that the treatment effect was the
       same for those with and without phones Go

                             Heterogeneous effects by phone coverage

                                  Encashed by June 8            Ever encashed           Days till encashed
                                     (1)           (2)       (3)     (4)       (5)     (6)
                                  Treatment       Control Treatment Control Treatment Control
                                                  mean              mean              mean
            Phone coverage
            No listed phone        0.0229∗∗        0.57        0.00691        0.72      -1.295∗∗∗      22.14
                                   (0.0116)                    (0.0116)                  (0.475)
            Listed phone           0.0202∗∗        0.76        0.0128∗∗       0.90        -0.475       19.13
                                  (0.00821)                   (0.00554)                  (0.396)

   All specifications include fixed effects at the randomization strata fixed level. Standard errors are clustered at the
   MAO level and reported in parentheses. The bottom row reports the F-statistic and p-value from a test of the null
   that coefficients are statistically similar across both categories.

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Spillovers

                              Potential Spillover Effect of Intervention

                                                                              (1)                        (2)
                                                                        Ever distributed            Ever encashed
      Number of treatment mandals in revenue division                       0.000679                   0.00847
                                                                            (0.00473)                 (0.00551)
      Constant                                                                0.874                     0.818
                                                                            (0.00696)                 (0.00807)
      Observations                                                              399                       399

    Tests for the possibility that supervisors of MAOs focused more attention on treatment MAOs. Districts in Telangana
    are divided into “revenue divisions”, which each contain several mandals. Although roughly the same fraction of
    mandals were treated in each district, we did not stratify the randomization at the revenue division level. As a
    result, there is random variation in the fraction of MAOs within each revenue division that are treated. If there
    were diversion of revenue division supervisor-level attention and attention matters for performance, we should expect
    worse performance among control MAOs with more treated MAOs in their revenue division, as these control MAOs
    would get less attention paid to them. Outcome in header. All specifications include fixed effects for districts and
    number of mandals in the revenue division. Standard errors in parentheses and clustered at the revenue division level.
    17 mandals could not be matched to revenue divisions, so were not included.

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