Casella, Alessandra; Eichengreen, Barry - In: Economic Journal 106 (1996) 436, pp. 605-19
This paper studies the effect of foreign aid on economic stabilization. Following Alberto Alesina and Allan Drazen (1991), the authors model the delay in stabilizing as the result of a distributional struggle. Since the delay is used to signal each faction's strength, the effect of the transfer...