Development Finance Institutions (DFIs) are frequently asked to demonstrate their additionality — meaning that they make investments that the private sector would not — but what evidence of additionality would look like is rarely articulated. This paper examines potential quantitative and...

This paper introduces a framework for studying the optimal dynamic allocation of foreign aid among multiple recipients. We pose the problem as one of weighted global welfare maximization. A donor in the North chooses an optimal path for international transfers, anticipating that consumption and...