Foreign Aid in the Presence of Corruption: Differential Games among Donors

B-Tier
Journal: Review of International Economics
Year: 2009
Volume: 17
Issue: 2
Pages: 230-243

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider two dynamic games of foreign aid. Model 1 deals with the case where donor countries continually feel the warm glow from the act of giving. Model 2 postulates that donors will stop giving aid when a target level of development is reached. In Model 1, there are multiple equilibria that can be Pareto ranked. In Model 2, the equilibrium strategies are nonlinear functions of the level of development. The flow of aid falls at a faster and faster rate as the target is approached. An increase in corruption will increase the flow of aid.

Technical Details

RePEc Handle
repec:bla:reviec:v:17:y:2009:i:2:p:230-243
Journal Field
International
Author Count
2
Added to Database
2026-01-25