Donor Competition for Aid Impact, and Aid Fragmentation /

This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient even without fixed costs, and the inefficiency increases in the equality of donors budge...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Annen, Kurt
مؤلفون آخرون: Moers, Luc
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2012.
سلاسل:IMF Working Papers; Working Paper ; No. 2012/204
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient even without fixed costs, and the inefficiency increases in the equality of donors budgets. The paper presents empirical evidence consistent with theoretical results. These imply that, short of ending donors maximization of relative aid impact, agreements to better coordinate aid allocations are not implementable. Moreover, since policies to increase donor competition in terms of aid effectiveness risk reinforcing relativeness, they may well backfire, as any such reinforcement increases aid fragmentation.
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وصف مادي:1 online resource (37 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students