Research on the macroeconomic effects of aid has expanded rapidly in recent years. In this paper, we provide a survey of this literature. We start by reviewing some theoretical models that suggest a positive impact of aid on investment and growth. We then discuss the empirical evidence, giving...

This paper deals with the methodology and interpretation of international price comparisons, focusing specifically on non-traded goods and services. The key difference to traded goods lies in the underlying objective of the comparison. International differences in the prices of traded goods are...

We start by reviewing the graphical approach to teaching the real business cycle model introduced in Barro (1984). We then look at where this approach cuts corners and suggest refinements. Finally, graphical and exact models are compared by means of impulse response functions. The graphical...