Donor Competition for Aid Impact, and Aid Fragmentation
We show that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium. This aid fragmentation result is robust to the introduction of fixed costs, even if they are improbably large. In equilibrium, smaller donors have less fragmented...
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Published by Oxford University Press on behalf of the World Bank
2019
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| Online Access: | http://hdl.handle.net/10986/31474 |