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Strategic Interaction and Donor Policy Determination in a Domestic Setting

Mansoob Murshed

No DP2002-107, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines some of the issues associated with the aid donor process arising from the theory of agency or principal-agent models and endogenous policy determination. The principals may be viewed as legislators and the agents as the aid agency. In addition to adverse selection and moral hazard the paper considers intrinsic sources of motivation for agents and the trade-off between adverse selection and moral hazard. It also considers multiple task agents, and where there are many principals with divergent objectives.

Keywords: Contracts; Economic assistance and foreign aid; Political science; Strategic planning (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (2)

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