Intro -- Contents -- I. INTRODUCTION -- II. BASIC FRAMEWORK -- III. BASELINE CALIBRATIONS -- IV. DOMESTIC ADDITIONAL EFFORT, POVERTY TRAPS, AND "TAKEOFF" -- V. EXTENSIONS -- VI. CONCLUDING REMARKS -- REFERENCES.

This paper deals with the growth literature. In particular, we are fundamentally concerning the recent empirical studies. For this purpose, we mainly base our study on a recent paper called The New Growth Evidence by J. Temple (2000) who gives a very detailed discussion of the empirical issues...

Relying on a simple endogenous growth model, this paper highlights a political instability effect as a potential explanation for why foreign aid is frequently ineffective with respect to economic performance. In the present framework, the role of the state is to fund institutions allowing for...