Logic of aid in an intertemporal setting

Slobodan Djajic (), Sajal Lahiri and Pascalis Raimondos ()
Additional contact information
Slobodan Djajic: IUHEI

No 06-2003, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: This paper studies the welfare implications of temporary foreign aid in the context of a simple two-country model of trade. In addition to its usual effects, a transfer of income in one period is assumed to influence the preferences of the recipient country in the following period. The implied changes in the terms of trade over the two periods are consistent with a number of possible outcomes with respect to the intertemporal welfare of the donor, the recipient, and the world as a whole. Particular attention is devoted to the conditions for strict Pareto improvement and the circumstances under which temporary aid transactions are likely to occur.

Keywords: Foreign aid; terms of trade; international transfers; intertemporal model (search for similar items in EconPapers)
Pages: 24
Date: 2003-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Review of International Economics, Volume 12, 1, 2004, pages 151-161

Downloads: (external link)
http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIWP06-2003.pdf (application/pdf)

Related works:
Journal Article: Logic of Aid in an Intertemporal Setting (2004)
Working Paper: Logic of Aid in an Intertemporal Setting
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:gii:giihei:heiwp06-2003

Access Statistics for this paper

More papers in IHEID Working Papers from Economics Section, The Graduate Institute of International Studies Contact information at EDIRC.
Bibliographic data for series maintained by Dorina Dobre ().