EconPapers    
Economics at your fingertips  
 

Efficient and fair allocation of aid

Guillaumont Patrick (), Phu Nguyen-Van (), Thi Kim Cuong Pham () and Laurent Wagner
Additional contact information
Guillaumont Patrick: Ferdi

Working Papers from FERDI

Abstract: This paper proposes a model of aid allocating which aims to equalize the opportunity between recipient countries to reduce the poverty, in particular the millennium development goal of reducing the poverty by half. The model also takes into account the natural deficit which is defined by the gap between the growth rate required to reach this millennium goal and the actual growth rate observed in the recipient country. The resulting optimal aid allocation is computed using the estimation of the growth equation. The latter takes into account effects of aid and structural handicaps which are represented by the economic vulnerability index and lack of human capital. We also perform a simulation study which shows a substantial difference between the aid allocation obtained with the Collier-Dollar (2002) criterion and that obtained with our model.

Keywords: Efficiency; equity; development aid; growth deficit; vulnerability (search for similar items in EconPapers)
JEL-codes: D61 D63 F35 I30 O19 (search for similar items in EconPapers)
Date: 2015-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.ferdi.fr/sites/www.ferdi.fr/files/publication/fichiers/wp_beta.pdf (application/pdf)

Related works:
Working Paper: Efficient and fair allocation of aid (2015) Downloads
Working Paper: Efficient and fair allocation of aid (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fdi:wpaper:3937

Access Statistics for this paper

More papers in Working Papers from FERDI Contact information at EDIRC.
Bibliographic data for series maintained by Vincent Mazenod ().

 
Page updated 2021-05-07
Handle: RePEc:fdi:wpaper:3937