Should a donor delegate the responsibility for allocating its aid budget to a less inequality averse agent to alleviate the consequences of the Samaritan's Dilemma it is facing? I show that when aid impact differs across recipients the optimal type of agent depends on whether or not committing...

This paper examines the issue of international development partnerships among NGOs in the context of a principle-agent framework. Specifically, we characterize the ability of shared religious values in development partnerships to mitigate agency problems. These advantages are weighed against...

We develop a theoretical model of foreign aid to analyse a method of disbursement of aid which induces the recipient government to follow a more pro-poor policy than it otherwise would do. In our two-period model, aid is given in the second period and the volume of it depends on the level of...