Economic sanctions, and the suspension of budget support in particular, are supposed to pressure target governments to comply with donors' demands by putting spending commitments at risk. We argue that this is too simplistic since governments have more fiscal levers at their disposal. The case...

Hezbollah, a Shia Islamist political party and militant group based in Lebanon, is believed to receive a significant amount of informal funding from Iran. In this paper we evaluate whether this funding has had any economically meaningful effect on subnational development in Lebanon. Since the...