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Aid, public expenditure, and Dutch disease.

Abstract:

Contemporary policy debates on the macroeconomics of aid often concentrate on short-run Dutch disease effects, ignoring the possible supply side impact of aid— financed public expenditure. We develop a simple model of aid and public expenditure in which public infrastructure capital generates an inter-temporal productivity spillover for both tradable and non-tradable sectors, where these productivity effects may display sector-specific biases. The model also allows for non-homothetic demands....

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Publisher:
CSAE (University of Oxford)
Series:
Working papers
Publication date:
2003-01-01
Language:
English
UUID:
uuid:23d3b30b-7096-4382-8b8f-0c33366589c1
Local pid:
oai:economics.ouls.ox.ac.uk:13627
Deposit date:
2011-08-15

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