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We propose a repeated moral hazard model with full commitment and limited punishment to study the problem of aid allocation in environments characterized by asymmetric information. The donor (principal) finances a three-period development program and the elite of the recipient country (agent),...
Persistent link: https://www.econbiz.de/10003913947
We model a rent-seeking contest among two 'identity ideologues', differentially located along a uni-dimensional identity continuum, and a 'mercenary', who can choose any location in-between. The contest jointly awards an identity-relevant good ('religion') and an identity-irrelevant good...
Persistent link: https://www.econbiz.de/10015080978
Since the late 1990s a selection on policy approach to aid was advocated such that more aid should be allocated to countries with good policies. A number of donors accepted this recommendation, including the World Bank, but there is little evidence that this has occurred. Donors, including the...
Persistent link: https://www.econbiz.de/10008932974
This paper examines whether the welfare difference between youth (aged 15-35) and adult (aged over 35) headed …) data for 2001 and 2018 reveals that the increase in youth educational attainment between 2001 and 2018 is significant in … line) between the 2001 and 2018 youth cohorts. The findings suggest that if the youth in 2001 had the same education …
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