During recent years, new doubts about the effectiveness of international aid have emerged. One of the arguments employed to justify this sceptical view is that aid can hinder tax effort in developing countries. Nevertheless, empirical research on the aid-tax nexus is inconclusive and it shows...

This paper deals with the effectiveness of several alternative models of aid allocation in terms of poverty reduction. We use a model that admits the presence of diminishing returns to aid in the output and poverty functions. We shall discuss the impact of aid on poverty in a single country,...

This paper explores the issue of whether countries with high levels of social capital give more foreign aid than others. It is often argued that in countries with high levels of social capital (as measured, for example, by trust, civic norms and membership of community groups) levels of...