The diversion of development aid to the recipient's military may be one explanation why aid is often found to be ineffective in promoting economic growth and development. Previous studies have not derived the causal effects of development aid on military expenditure. Using a new instrumental...

From the standpoint of competition policy, it might seem desirable to modularize competition to the greatest extent possible so that the best and cheapest products prevail at every stage of a production process and in every component of systems of complementary products. But integration can also...