We augment Holmstrom’s (1982) team production model in the context of aid effectiveness. In addition, we show how donor proliferation leads to inefficient supply of aid in the recipient country because of the free-riding problem faced by the donors. Our empirical findings support the...

This paper develops a model for joint liability borrowings that facilitates credit market transactions ex ante, but may induce the borrower's suicide ex post through the stigma associated with default. A Japanese suicide survey provides some supportive evidence.