Santanu, Chatterjee; Paola, Giuliano; Ilker, Kaya - In: The B.E. Journal of Macroeconomics 12 (2012) 1, pp. 1-36
This paper examines the link between foreign aid and the composition of government spending in aid-recipient countries. Two questions are addressed: (i) does foreign aid crowd out government spending in aid-recipient countries, and (ii) does the degree of fungibility vary across different...