Logic of aid in an intertemporal setting

Djajić, Slobodan, Lahiri, Sajal, & Raimondos-Møller, Pascalis (2004) Logic of aid in an intertemporal setting. Review of International Economics, 12(1), pp. 151-161.

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The paper studies the welfare implications of temporary foreign aid in the context of a simple two-country model of trade. In addition to its usual effects, a transfer of income in one period is assumed to influence the preferences of the recipient country in the following period. The implied changes in the terms of trade over the two periods are consistent with a number of possible outcomes with respect to the intertemporal welfare of the donor, the recipient, and the world as a whole. Particular attention is devoted to the conditions for strict Pareto improvement and the circumstances under which temporary aid transactions are likely to occur.

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ID Code: 94022
Item Type: Journal Article
Refereed: Yes
DOI: 10.1111/j.1467-9396.2004.00437.x
ISSN: 1467-9396
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2004 Blackwell Publishing Ltd
Deposited On: 29 Mar 2016 23:51
Last Modified: 29 Mar 2016 23:51

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