Aid volatility and Dutch disease : is there a role for macroeconomic policies? /

This paper studies how macroeconomic policies can help offset two unintended and undesirable features of foreign aid: its volatility and Dutch disease. We present evidence that aid volatility augments trade balance volatility and that foreign aid, with the important exception of years of adverse sho...

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Bibliographic Details
Call Number:Libro Electrónico
Main Authors: Prati, Alessandro, 1961- (Author), Tressel, Thierry (Author)
Corporate Author: International Monetary Fund. Research Department
Format: Electronic eBook
Language:Inglés
Published: Washington, D.C. : International Monetary Fund, Research Dept., ©2006.
Series:IMF working paper ; WP/06/145.
Subjects:
Economic assistance > Econometric models.
Economic policy > Econometric models.
Aide économique > Modèles économétriques.
Politique économique > Modèles économétriques.
Economic assistance > Econometric models
Economic policy > Econometric models
Online Access:Texto completo
Table of Contents:
  • Contents
  • I. INTRODUCTION
  • II. THE MODEL
  • III. PARTIAL AND GENERAL EQUILIBRIUM EFFECTS OF FOREIGN AID AND MACROECONOMIC POLICY
  • IV. THE OPTIMAL TIMING OF AID AND MACROECONOMIC POLICY
  • V. THE EFFECTIVENESS OF MACROECONOMIC POLICIES IN AID-RECEIVING COUNTRIES
  • VI. CONCLUSIONS
  • Appendix I. Solution Strategy
  • Appendix II-a. Managed Float Regimes
  • Appendix II-b. General Equilibrium Effect of Front-Loading Aid with LBD Externalities
  • Appendix III. Pseudo First Stage of System GMM Panel Regressions
  • REFERENCES

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