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What We Miss By Missing Data: Aid Effectiveness Revisited

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Abstract

Missing data is a major problem in empirical development economics, as it may entail efficiency losses as well as biased results. This is an issue within the literature that investigates the effect of foreign aid on welfare. Using multiple imputation techniques, we address these problems and find lower aid effectiveness than previous studies suggest. In addition, imputation allows for comparison of different welfare indicators within the same framework. We find that if aid effectiveness is evaluated based on such indicators, the respective indicator choice can matter for the results.

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File URL: http://homepage.univie.ac.at/Papers.Econ/RePEc/vie/viennp/vie1302.pdf
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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 1302.

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Date of creation: Mar 2013
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Handle: RePEc:vie:viennp:1302

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Web page: http://www.univie.ac.at/vwl

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  8. Alberto Alesina & David Dollar, 1998. "Who Gives Foreign Aid to Whom and Why?," NBER Working Papers 6612, National Bureau of Economic Research, Inc.
  9. Mishra, Prachi & Newhouse, David, 2009. "Does health aid matter?," Journal of Health Economics, Elsevier, vol. 28(4), pages 855-872, July.
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Cited by:
  1. Maiga, Eugenie W.H., 2014. "Does foreign aid in education foster gender equality in developing countries?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).

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