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This paper analyzes whether the foreign assistance provided for specific categories of expenditure is shifted among them, contrary to the wishes of donors. It also considers whether aid reduces the tax effort of recipient governments. Econometric results are presented for the Dominican Republic...
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This paper considers whether foreign aid given for specific categories of expenditure is fungible among them and whether aid reduces tax effort by the recipient government. Models developed to analyze the fiscal relations among different levels of government in the United States are applied to...
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