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...

Firms informality is pervasive in Bangladesh. We implemented an information campaign on registration and find that the treatment made firms more aware, but had no impact on registration. Low benefits and high indirect costs appear to be barriers to formality.