Liu, Xiangbo; Zhang, Xiaomeng; Chao, Chi-Chur - In: Economic Modelling 43 (2014) C, pp. 435-438
Using an endogenous growth model, this paper examines the growth and welfare effects of foreign aid in the recipient economy. The emphasis is on the incentive factor of the effort–leisure choice. Besides financing public services, part of the aid is transferred to the public. This increases...