Bluhm, Richard; Gassebner, Martin; Langlotz, Sarah; … - 2016 - October 2016
This paper studies the effects of bilateral foreign aid on conflict escalation and de-escalation. We make three major … recipients. We establish that the effect of foreign aid on the various transition probabilities is heterogeneous and can be … estimator that allows for unobserved heterogeneity and corrects for endogeneity. Third, we identify the causal effect of foreign …