Series: IMF Working Papers
Author(s): Kurt Annen , and Luc Moers
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 August 2012
Keywords: Aid Effectiveness, Aid Fragmentation, Donor Competition, Donor Coordination, humanitarian aid, aid coordination, foreign investment, Analysis of Collective Decision-Making: General,
This paper shows that donors that maximize relative aid impact spread their budgets across many recipient countries in a unique Nash equilibrium, explaining aid fragmentation. This equilibrium may be inefficient ev...