Aid allocation with optimal monitoring: Theory and policy

IF 5.1 1区 经济学 Q1 ECONOMICS Journal of Development Economics Pub Date : 2024-09-12 DOI:10.1016/j.jdeveco.2024.103364
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Abstract

We explore the implications of allowing a poverty-averse donor to monitor aid use within the familiar context of the needs vs. aid effectiveness tradeoff. The paper focuses on the optimal aid allocation between two countries when the donor simultaneously decides about aid shares and country-specific monitoring effort aimed at increasing the amount reaching the poor. Endogenizing aid effectiveness is shown to raise the poor’s income in the worse-governed country, yet not necessarily in the better-governed one, whereas the effect on country aid shares is essentially ambiguous. Those results still hold when the basic model is extended in various directions. Conventional aid allocation rules should be re-examined in their light.

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最佳监督下的援助分配:理论与政策
我们探讨了在我们熟悉的需求与援助效果权衡的背景下,允许厌恶贫困的捐助方监督援助使用情况的意义。本文的重点是当援助国同时决定援助份额和针对具体国家的监督努力以增加援助给贫困人口的金额时,两国之间的最优援助分配。结果表明,将援助实效内生化会提高治理较差国家的穷人收入,但不一定会提高治理较好国家的穷人收入,而对国家援助份额的影响基本上是模糊的。当基本模型向不同方向扩展时,这些结果仍然成立。传统的援助分配规则应根据这些结果重新审视。
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来源期刊
CiteScore
8.30
自引率
4.00%
发文量
126
审稿时长
72 days
期刊介绍: The Journal of Development Economics publishes papers relating to all aspects of economic development - from immediate policy concerns to structural problems of underdevelopment. The emphasis is on quantitative or analytical work, which is relevant as well as intellectually stimulating.
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