example of a "delegation-scheme." Conversely, project aid represents a more "centralized" type of aid. According to the theory …, when countries ́local knowledge is more important than donors ́information, recipient countries ́discretion in the choice … influences the amount of project aid, while recipients ́local knowledge is positively correlated with the amount of budget …

-agent framework, it analyzes two alternative policy-decision schemes - "decentralization" and "centralization" - when "knowledge …" consists of unverifiable information and the quality of communication depends on the conflict of interests between the …, the extent of misaligned interests and the relative importance of local and central government knowledge affects the …