Foreign Aid and Weakest-Link International Public Goods: An Experimental Study (2007)
AuthorsLei, V., Tucker, S., Vesely, F.show all
In this paper, we investigate efficiency differences between income and in-kind transfers as distribution mechanisms of foreign aid to weakest-link international public goods in a laboratory environment. We find that if there is relatively small difference in country size, then income transfers seem to provide a higher provision of the international public good, and thus higher overall welfare level than that of in-kind transfers. However, if there is a large disparity in country size, then in-kind transfers appear to provide a higher level of IPG provision and higher accompanying global welfare.
CitationLei, V., Tucker, S., Vesely, F. (2007) Foreign Aid and Weakest-Link International Public Goods: An Experimental Study. European Economic Review, 51(3), pp. 599-623.
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