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The notion that foreign aid harms the institutions of recipient governments remains prevalent. We combine new … disaggregated aid data and various metrics of political institutions to re-examine this relationship. Long-run cross-section and … alternative dynamic panel estimators show a small positive net effect of total aid on political institutions. Distinguishing …
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The provision of public goods in developing countries is a central challenge. This paper studies a model where each agent's effort provides heterogeneous benefits to the others, inducing a network of opportunities for favor-trading. We focus on a classical efficient benchmark – the Lindahl...
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