Can donor coordination solve the aid proliferation problem?

Aminur Rahman and Yasuyuki Sawada

Economics Letters, 2012, vol. 116, issue 3, 609-612

Abstract: We augment Holmstrom’s (1982) team production model in the context of aid effectiveness. In addition, we show how donor proliferation leads to inefficient supply of aid in the recipient country because of the free-riding problem faced by the donors. Our empirical findings support the theoretical prediction with regard to donor proliferation. However, this raises the question whether the current efforts in the international aid community with regard to donor coordination can effectively solve the aid proliferation problem.

Keywords: Aid proliferation; Donor coordination; Free-rider problem (search for similar items in EconPapers)
JEL-codes: F35 O19 O40 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Working Paper: Can donor coordination solve the aid proliferation problem ? (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:116:y:2012:i:3:p:609-612

DOI: 10.1016/j.econlet.2012.06.013

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