Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/19807
Authors: 
Fuentes, Raúl
Year of Publication: 
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

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