We build a dynamic model where the economy is vulnerable to belief-driven slow-moving debt crises at intermediate debt level, and rollover crises at both low and high debt levels. Vis-à-vis the threat of slow-moving crises, countercyclical deficits generally welfare-dominate debt reduction...

Fiscal multipliers appear to vary greatly over time and space. Based on VARs for a large number of countries, we document a strong correlation between wealth inequality and the magnitude of fiscal multipliers. In an attempt to account for this finding, we develop a life-cycle,...

Policy conditionality has been a frequently used tool in the context of the Euro zone crisis management. By linking the disbursement of loan installments to specific policy requirements the macro-economic adjustment programmes used conditionality as leverage to promote structural reforms.How...

Existing research generally finds weak positive effects of aid for trade (AfT) on aggregate merchandise trade of recipients once endogeneity in the AfT-trade relationship is accounted for. In this paper, we confirm weak findings for both aggregate merchandise and services trade of recipients,...

This paper investigates whether the aid allocation behavior of US Western allies during the Cold War reflected ideological motives. While there is extensive evidence on the ideological motivations underlying the US aid program during the Cold War, little is known about the behavior of western...

International student flows from emerging and developing countries have grown tremendously over the last decades. In this paper, we address the question of whether donors, who might care about the potential brain drain effects student emigration entails in the countries of origin, can affect the...

The empirical literature on aid for trade (AfT) mainly considers its effects on merchandise trade and investment. In this paper we examine the relationship between AfT and trade in services as well as trade in goods over 2002-2015 in both aggregate and bilateral analysis. We observe...

Since policymakers increasingly regard foreign aid as a means to manage international flows of migrants, it is important to obtain accurate empirical evidence on the complex link between aid and migration. Recent research has shown that the impact of foreign assistance on migrant flows is highly...

Tackling the root causes of migration from developing countries through development cooperation has been suggested as an essential part of the policy mix in OECD migrant destinations, even though the evidence on whether economic development leads to more or less people emigrating is so far...

Understanding the development implications of agri-food value chains is crucial as they are a fundamental component of developing countries’ growth potential and could increase rural incomes and reduce poverty. This note reviews some of the implications of these global agri-food value chains...