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Proceedings of the German Development Economics Conference, 2005 (Kiel) >
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http://hdl.handle.net/10419/19807
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| Title: | | Aid, Policies and Growth: A Non-Canonical Alternative for solving This Puzzle.  |
| Authors: | | Fuentes, Raúl |
| Issue Date: | | 2005 |
| Series/Report no.: | | Proceedings of the German Development Economics Conference, Kiel 2005 / Verein für Socialpolitik, Research Committee Development Economics 14 |
| Abstract: | | This paper presents a two-sector small semi-open economy Ramsey growth model involving foreign aid as an input in the production function. An activist government allocates this input endogenously across sectors and optimizes policies in a non-standard way. Once calibrated, mainly on countries exhibiting medium relative prices values, the model reproduces the main stylized facts outlined in the literature and suggests a strategy that could make aid work. |
| Subjects: | | Foreign aid Economic development Economic growth Quantitative approach |
| JEL: | | O11 O23 O41 F35 E62 |
| Document Type: | | Conference Paper |
| Appears in Collections: | | Proceedings of the German Development Economics Conference, 2005 (Kiel)
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