This paper reviews the various measures which have been used in the recent literature to assess how well donors allocate their aid across countries. We begin by proposing three desirable criteria for a measure of allocative performance, which make limited assumptions. We then show that all...

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...