Can Donor Coordination Solve the Aid Proliferation Problem?
The paper augments Holmstrom s (1982) team production model in the context of aid effectiveness. The analysis shows how donor proliferation leads to inefficient supply of aid in the recipient country because of the free-riding problem faced by the...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100325112605 http://hdl.handle.net/10986/3738 |
| Summary: | The paper augments Holmstrom s (1982)
team production model in the context of aid effectiveness.
The analysis shows how donor proliferation leads to
inefficient supply of aid in the recipient country because
of the free-riding problem faced by the donors. The
empirical findings support the theoretical prediction with
regard to donor proliferation. However, this raises the
question whether the current efforts in the international
aid community with regard to donor coordination can in fact
solve the aid proliferation problem. |
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