Recent studies and approaches to foreign aid effectiveness have concentrated on its impact on economic growth. But aid’s main goal is poverty reduction, not economic growth. In this paper, aid’s impact on poverty, growth, and inequality are analyzed. A 97 country sample is used for the...

Although the literature on aid effectiveness is vast, most of it is based on cross-country studies and does not address the Mediterranean countries as a especial group. To fill this gap, this paper describes the main structural characteristics of overseas development assistance (ODA). ODA is...

This article defines impact assessment and evaluation while comparing three different approaches. First, randomized evaluations or random control trials, which aim to maximize quantitative accuracy and solve selection bias. Second, non-experimental methods, where randomization is not possible....

España tenía en 1959 la misma renta per capita que Chile, Costa Rica y Nicaragua. En la actualidad, sus niveles de vida son muy diversos. España pasó de un sistema autárquico en la década de los 40 sin recibir ayuda externa a un sistema abierto al comercio y la integración económica en...

Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this hypothesis in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant and...

We present an international trade model with multiproduct firms. Firms are heterogeneously endowed with two types of capabilities that jointly determine the trade-off within firms between managing a large portfolio of products and producing at low marginal cost. The model can explain many of the...

This paper reports data from a laboratory experiment on two-period moral hazard problems. The findings corroborate the contract-theoretic insight that even though the periods are technologically unrelated, due to incentive considerations principals can benefit from offering long-term contracts...

We study a continuous-time game of strategic experimentation in which the players try to assess the failure rate of some new equipment or technology. Breakdowns occur at the jump times of a Poisson process whose unknown intensity is either high or low. In marked contrast to existing models, we...

We study endogenous group formation in tournaments employing experimental three-player contests. We find that players in endogenously formed alliances cope better with the moral hazard problem in groups than players who are forced into an alliance. Also, players who are committed to expending...