Recent developments in fiscal response with an application to Costa Rica
This paper uses the framework of Fiscal Response Models to analyse the impact of foreign assistance on recipient government's behaviour. Such models provide a means of examining the impact of aid on taxation and expenditure decisions. In the theoretical model presented here foreign aid has been endogenized to account for the fact that governments have some influence over the amount of aid committed to the country, and considerable influence over disbursements. Thus, fiscal planning will be based on targets for expenditures and revenues, the latter including aid. This permits a more complete examination of the effects of aid on government fiscal behaviour than do standard fungibility models. The model is illustrated in an application to Costa Rica, where the effect of aid on government allocation of resources appears to have been negligible. Copyright © 2000 John Wiley & Sons, Ltd.
Volume (Year): 12 (2000)
Issue (Month): 3 (04)
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/5102/home|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Binh, Tran-Nam & McGillivray, Mark, 1993. "Foreign aid, taxes and public investment A comment," Journal of Development Economics, Elsevier, vol. 41(1), pages 173-176, June.
- White, Howard, 1994. "Foreign aid, taxes and public investment: A further comment," Journal of Development Economics, Elsevier, vol. 45(1), pages 155-163, October.
- Khan, Haider Ali & Hoshino, Eiichi, 1992. "Impact of foreign aid on the fiscal behavior of LDC governments," World Development, Elsevier, vol. 20(10), pages 1481-1488, October.
- Gang, Ira N. & Ali Khan, Haider, 1990. "Foreign aid, taxes, and public investment," Journal of Development Economics, Elsevier, vol. 34(1-2), pages 355-369, November.
- White, H. & McGillivray, M., 1992.
"Aid and government : a dynamic model of aid, income and fiscal behaviour,"
ISS Working Papers - General Series
18828, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
- Howard White, 1993. "Aid and government: A dynamic model of aid, income and fiscal behaviour," Journal of International Development, John Wiley & Sons, Ltd., vol. 5(3), pages 305-312, 05.
- Franco-Rodriguez, Susana & Morrissey, Oliver & McGillivray, Mark, 1998.
"Aid and the Public Sector in Pakistan: Evidence with Endogenous Aid,"
Elsevier, vol. 26(7), pages 1241-1250, July.
- Susana Franco-Rodriguez, & Mark McGillivray, & Oliver Morrissey, . "Aid and the Public Sector in Pakistan: Evidence with Endogenous Aid," Discussion Papers 98/2, University of Nottingham, CREDIT.
- Pack, Howard & Pack, Janet Rothenberg, 1993. "Foreign Aid and the Question of Fungibility," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 258-65, May.
- Feyzioglu, Tarhan & Swaroop, Vinaya & Zhu, Min, 1998. "A Panel Data Analysis of the Fungibility of Foreign Aid," World Bank Economic Review, World Bank Group, vol. 12(1), pages 29-58, January.
- Mosley, Paul & Hudson, John & Horrell, Sara, 1987. "Aid, the Public Sector and the Market in Less Developed Countries," Economic Journal, Royal Economic Society, vol. 97(387), pages 616-41, September.
- Mark McGillivray & Oliver Morrissey, 2000. "Aid fungibility in Assessing Aid: red herring or true concern?," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 413-428, 04.
When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:12:y:2000:i:3:p:429-441. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.