Supervision and assessment

Fiscal management

Reward (Z)

Punish (1 − Z)

Effective budget

[(1 − x) y + x (1 − y)], Z

[(1 − x)y + x(1 − y)], (1 − Z)

Ineffective budget

[xy + (1 − x), (1 − y)], Z

[xy + (1 − x), (1 − y)], (1 − Z)