Focusing on seven bilateral donors over a 25 year period, the paper answers 4 questions related to aid allocation practice. Questions one and two examine allocation differences between donors and time periods. Questions three and four relate to changes in poverty and policy selectivity. To...

There are genuine concerns that foreign aid may crowd out domestic tax revenue. In the short run this would have negative consequences for the recipient government's revenue, and over a longer period could corrode governance through breaking the social contract. In recent years, two papers have...

This paper uses econometric analysis to show that the fragmentation of bilateral donors' aid across many recipients tends to raise their administration costs. It then develops an aid allocation model to show how bilateral donors can become much more specialized in terms of which recipients they...