This paper examines fungibility as a possible explanation for the missing link between foreign aid and economic growth. The composition of aid plays a crucial role in determining the composition of government spending and, consequently, the magnitude of fungibility and its impact on growth....

Everyone knows that aid is not working as intended, and that something must change. The big question is how to change the status quo. The current international aid debate is characterized by dichotomies and over-simplified generalizations. In order to push the debate forward and identify...

This paper examines whether the federal structure of aid-receiving countries matters in explaining aid effectiveness. Following the decentralization theorem, the devolution of powers should increase aid effectiveness, since local decision-makers are better informed about local needs. At the same...

The paper reviews the evidence of the impact of trade liberalisation on the economic performance of poor developing countries with respect to poverty reduction, the distribution of income within countries, the distribution of income between countries, trade and the balance of payments, and...

Empirical evidence suggests that money in the hands of mothers (as opposed to their husbands) benefits children. Does this observation imply that targeting transfers to women is good economic policy? We develop a series of noncooperative family bargaining models to understand what kind of...

The move towards multiparty democracy in Zambia in the early 1990s was heralded as the beginning of a new era of more pluralist politics in Africa. The new government’s willingness to adopt economic reforms and policies, hitherto resisted, was also seen as a sign that henceforth African...