The poverty mapping methodology for estimating welfare rankings from small areas has proven to be useful in guiding allocation of government funds, regional planning, and general policy formulation. Nevertheless, poverty mapping also suffers from a series

In a recent article, Nowak-Lehmann, Dreher, Herzer, Klasen, and Mart.nez-Zarzoso (2012) (henceforth NDHKM) conclude that foreign aid has not had a significant effect on income, based on evidence from panel data potentially covering 131 countries over the