This paper addresses three aspects of the micro-macro linkage which are of particular interest to economists. First, is the issue of how changes in the macro environment are transmitted to and impact on agents at the micro level. Second, there is the issue of how micro agents react to their...

Does aid contribute to human development other than by increasing growth? In doing so, is aid more or less effective in poorer countries (those with low levels of aggregate welfare)? This paper addresses these issues, assessing if there is cross-country aggregate evidence for an effect of aid on...

This study examines the responsiveness of peasant farmers in Ethiopia to price and non-price factors. Quadratic production and restricted profit functions are estimated using farm-level survey data from Ethiopia in 1994. The results indicate that farmers respond only modestly to price...

The principal objective of international development policy as implied by the title of the 1997 White Paper on International Development: Eliminating World Poverty, is to improve the quality of life of the majority of people in developing countries. This objective implies that aid should be...