Endogeneity between health and wealth presents a challenge for estimating causal effects of health shocks. Using a quasi-experimental design, comprising exogenous shocks sustained as bus accident injuries in India, with controls drawn from travelers on the same bus routes one year later, I present new evidence of causal effects on consumption and debt. Using primary household survey data, I find that households faced with shock-related expenditures are able to smooth consumption on food, housing, and festivals, with small reductions in educational spending. Debt was the principal mitigating mechanism households used, leading to significantly larger levels of indebtedness.

We study how agents respond to performance incentives according to key personality traits (conscientiousness and neuroticism) through a field experiment offering financial incentives for improving maternal and neonatal health outcomes to rural Indian doctors. More conscientious providers performed better--but improved less--under performance incentives. The effect of the performance incentives was also smaller for providers with higher levels of neuroticism. Our results contribute to a growing body of empirical research on heterogeneous responses to incentives and have implications for worker selection.