The Aid Effectiveness Literature has recently investigated the effects of foreign aid on economic growth through country policies. Different results have been reached across different studies mainly due to their sensitivity to policy measures and data samples. The internal political setting of...

It is often difficult for external agents understanding to what extent the preferences of a government are directed towards welfare enhancing policies and reforms. I develop a principal-agent model in which a domestic lobby attempts to in.uence the government.s policy choices by means of...