The Composition of Aid and the Fiscal Sector in an Aid-Recipient Economy: A Model

George Mavrotas and Bazoumana Ouattara

No DP2003-11, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Building on recent work in the fiscal response literature, the present paper develops a new fiscal response model, which, for the first time in the relevant literature, combines the ideas of both endogenous and disaggregated aid. We endogenized aid on the grounds that the recipient government has some influence over aid disbursements. Regarding aid disaggregation, it is argued that each of the main four categories of aid, namely project aid, programme aid, technical assistance and food aid may exert different effects on the recipient economy.

Keywords: Economic assistance and foreign aid; Fiscal policy (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: The Composition of Aid and the Fiscal Sector in an Aid-Recipient Economy: A Model (2010)
Working Paper: The Composition of Aid and the Fiscal Sector in an Aid-Recipient Economy: A model (2003)
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