Focusing on seven bilateral donors over a 25 year period, the paper answers 4 questions related to aid allocation … practice. Questions one and two examine allocation differences between donors and time periods. Questions three and four relate … of four factors that influence aid allocation: poverty, policy, proximity and population. The results reaffirm findings …

In this study, we derive a poverty-minimizing allocation rule, based on which we assess the povertyefficiency of actual … from aid darlings (countries receiving more aid than the allocation rule specifies) to aid orphans (countries receiving … less aid than the allocation rule specifies). The estimated poverty-reducing efficiency varies considerably across donors …