Resource title

Aid, Policies and Growth: A Non-Canonical Alternative for solving This Puzzle.

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Resource description

This paper presents a two-sector small semi-open economy Ramsey growth model involving foreign aid as an input in the production function. An activist government allocates this input endogenously across sectors and optimizes policies in a non-standard way. Once calibrated, mainly on countries exhibiting medium relative prices values, the model reproduces the main stylized facts outlined in the literature and suggests a strategy that could make aid work.

Resource author

Raúl Fuentes

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19807

Resource license

Adapt according to the presented license agreement and reference the original author.