Djaji, Slobodan; cacute; Lahiri, Sajal; … - In: Review of International Economics 12 (2004) 1, pp. 151-161
The paper studies the welfare implications of temporary foreign aid in the context of a simple two-country model of trade. In addition to its usual effects, a transfer of income in one period is assumed to influence the preferences of the recipient country in the following period. The implied...