Chatterjee, Santanu; Giuliano, Paola; Kaya, Ilker - Institute for the Study of Labor (IZA) - 2007
growth. The composition of aid plays a crucial role in determining the composition of government spending and, consequently …, the magnitude of fungibility and its impact on growth. Embedding fungibility as an equilibrium outcome in an endogenous … growth framework, we show that the substitution away from domestic government investment is higher than from government …