We analyze the growth impact of official development assistance to developing countries. Our approach is different from that of previous studies in two major ways. First, we disentangle the effects of two kinds of aid: developmental and non-developmental. Second, our specifications allow for the...

Intro -- Contents -- I. INTRODUCTION -- II. RELATED LITERATURE -- III. THE MODEL -- IV. CROSS- COUNTRY INCOME DIFFERENCES -- V. POLICY EXPERIMENTS -- VI. THE AID COST OF REFORM -- VII. AID FAILURES -- VIII. CONCLUSION -- REFERENCES -- A. Optimal Fiscal Policy in a Closed Economy -- B. Optimal...

Intro -- Contents -- I. INTRODUCTION -- II. BASIC FRAMEWORK -- III. BASELINE CALIBRATIONS -- IV. DOMESTIC ADDITIONAL EFFORT, POVERTY TRAPS, AND "TAKEOFF" -- V. EXTENSIONS -- VI. CONCLUDING REMARKS -- REFERENCES.