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'...

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Bibliographic Details
Main Authors: Annen, Kurt, 1967- (Author), Moers, Luc (Author)
Corporate Author: International Monetary Fund. Middle East and Central Asia Department
Format: Electronic eBook
Language:English
Published: [Washington, D.C.] : International Monetary Fund, ©2012.
Series:IMF working paper ; WP/12/204.
Subjects:
Online Access:DE-862
DE-863
Summary: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.
Item Description:Title from PDF title page (IMF Web site, viewed August 13, 2012).
"Middle East and Central Asia Dept."
"August 2012."
Physical Description:1 online resource (37 pages)
Bibliography:Includes bibliographical references.
ISBN:1475559577
9781475559576
147550554X
9781475505542
147553924X
9781475539240
1475520212
9781475520217

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