Series: IMF Working Papers
Author(s): Hulya Ulku , and Tito Cordella
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 September 2004
Keywords: Aid policies, concessionality, empirical growth models, statistics, outliers, samples, predictions, indebted countries, Economic Growth and Aggregate Productivity: General,
Under what conditions should grants be preferred to loans? To answer this question, we present a simple model à la Krugman (1988) and show that, for any given level of developmental assistance, the optimal degree o...