Series: IMF Working Papers
Author(s): Timothy Lane , Leslie Lipschitz , Cristina Arellano , and Ales Bulir
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 June 2005
Keywords: Real business cycle, general equilibrium, aid, transfer problem, tradable goods, nontradable goods, standard deviation, elasticity of substitution, terms of trade, Computable General Equilibrium Models
The paper examines the effects of aid and its volatility on consumption, investment, and the structure of production in the context of an intertemporal two-sector general equilibrium model. A permanent flow of aid...