Adam, Christopher; O'Connell, Stephen A. - Department of Economics, Oxford University - 2008
We show that a combination of temporariness and spending pressure is intrinsic to the aid relationship. In our … proves permanent, but if the donor is temporary the recipient faces an aid collapse and a fiscal adjustment problem. The … Samaritan's dilemma is at work here, in the guise of a use-it-or-lose-it restriction on spending out of aid. This restriction …