The paper addresses the issues of contribution of aids towards human development and the efficiency of such aids in poorer countries, assessing if there is cross-country evidence for an effective human development by financing public expenditures that increase welfare indicators.

This paper first assesses the aid-growth literature with a focus on recent contributions. The aid-growth literature is then framed, for the first time, in terms of the Rubin Causal Model, applied at the macroeconomic level. The results show that aid has a positive and statistically significant...

Building on recent work in the fiscal response literature, the present paper develops a new fiscal response model, which, for the first time in the relevant literature, combines the ideas of both endogenous and disaggregated aid. We endogenized aid on the grounds that the recipient government...

In this paper they examine whether absorptive capacity can constitute sufficient justification for rejecting the proposal of a large aid increase to support the ‘big push’. They argue that the probability of a poverty trap exists for many countries, in particular the least developed...