This paper argues that the reduction of horizontal inequalities (HIs) or inequalities between culturally defined groups should inform aid policy in heterogeneous countries with severe HIs. It shows how this would change aid allocation across countries, leading to more aid to heterogeneous...

There has been significant amount of aid inflows to developing countries including Ghana, but these have been very volatile. Aid flows have been associated with low domestic resource mobilization and have reduced Ghana to a country heavily dependent on aid. The amount of official development...

An important feature of aid to developing countries is that it is given to the government. As a result, aid should be expected to affect fiscal behaviour, although theory and existing evidence is ambiguous regarding the nature of these effects. This paper applies techniques developed in the...