Foreign aid and weakest-link international public goods: An experimental study |
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Authors: | Vivian Lei Steven Tucker |
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Affiliation: | a Department of Economics, University of Wisconsin-Milwaukee, 3210 N. Maryland Ave., Bolton Hall 818, Milwaukee, WI 53201, USA b Department of Economics, University of Canterbury, New Zealand c Department of Economics, University of Wisconsin-Milwaukee, USA |
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Abstract: | In this paper, we investigate efficiency differences between income and in-kind transfers as distribution mechanisms of foreign aid to weakest-link international public goods in a laboratory environment. We find that if there is relatively small difference in country size, then income transfers seem to provide a higher provision of the international public good, and thus higher overall welfare level than that of in-kind transfers. However, if there is a large disparity in country size, then in-kind transfers appear to provide a higher level of IPG provision and higher accompanying global welfare. |
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Keywords: | D70 H41 C90 |
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