We develop a North-South model of foreign aid and cross-border pollution resulting from production activities in the recipient country. There is both private and public abatement of pollution, the latter being financed through emissions tax revenue and foreign aid. We characterise a Nash...

Foreign aid, international migration and welfare / Slobodan Djajic -- The hope for hysteresis in foreign aid / Gil S. Epstein, Ira N. Gang -- A Pareto-improving foreign aid in a dynamic north-south Model / Koji Shimomura -- International transfer under stagnation / Yoshiyasu Ono -- Poverty,...

Despite growing aid fatigue in the global North, the number of bilateral aid-providing states is at an all-time high and continues to expand. In this paper, we examine the paradox of new donor countries' (NDCs) dramatic growth by asking two questions. First, what is driving donor proliferation?...

We develop a political-economic model of foreign aid allocation. Each ethnic group in the donor country lobbies the government for allocating more aid to its country of origin, and the government accepts contributions from lobby groups. Initial per-capita income of the recipients and those of...

This paper investigates the optimality of international income transfers in a two-country model in which each country engages in non-cooperative trade policy behaviour. It is shown that unconditional income transfers can never be optimal for the donor country, which not only suffers the loss of...