Does conditionality work? A test for an innovative US aid scheme

► We analyze whether aid conditionality can work if properly designed. ► We focus on the effect of MCC-aid on corruption in (potential) recipient countries. ► We employ a difference-in-difference-in-differences (DDD) approach. ► We find strong anticipation effects immediately after the announcement of the MCC. ► Increasing uncertainty has weakened the incentive to fight corruption over time.