Evidence for the long-term effects of foreign aid on local communities is mixed. In a laboratory experiment, we investigate whether external subsidies, e.g. foreign assistance, promote or undermine giving. Subjects play two rounds of a dictator game followed by an elicitation of norms. In both...

In this paper, we investigate efficiency differences between income and in-kind transfers as distribution mechanisms of foreign aid to weakest-link international public goods in a laboratory environment. We find that if there is relatively small difference in country size, then income transfers...

We experimentally study the influence of local information conditions on elite capture and social exclusion in community-based development schemes with heterogeneous groups. Not only information on the distribution of aid resources through community-based schemes, but also information on who...