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What We Miss By Missing Data: Aid Effectiveness Revisited

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
Contact details of provider: Web page: http://www.univie.ac.at/vwl

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  1. Mishra, Prachi & Newhouse, David, 2009. "Does health aid matter?," Journal of Health Economics, Elsevier, vol. 28(4), pages 855-872, July.
  2. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2001. "On the Empirics of Foreign Aid and Growth," EPRU Working Paper Series 03-13, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics, revised Sep 2003.
  3. Robert Deacon, 2009. "Public good provision under dictatorship and democracy," Public Choice, Springer, vol. 139(1), pages 241-262, April.
  4. Kobi Abayomi & Andrew Gelman & Marc Levy, 2008. "Diagnostics for multivariate imputations," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 57(3), pages 273-291.
  5. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods And Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 114(4), pages 1243-1284, November.
  6. Christopher Kilby, 2009. "Donor influence in international financial institutions: Deciphering what alignment measures measure," Villanova School of Business Department of Economics and Statistics Working Paper Series 8, Villanova School of Business Department of Economics and Statistics.
  7. Michael A. Clemens & Steven Radelet & Rikhil Bhavnani, 2004. "Counting chickens when they hatch: The short-term effect of aid on growth," International Finance 0407010, EconWPA.
  8. Simeon Djankov & José G. Montalvo & Marta Reynal-Querol, 2005. "The curse of aid," Working Papers 257, Barcelona Graduate School of Economics.
  9. Dollar, David & Alesina, Alberto, 2000. "Who Gives Foreign Aid to Whom and Why?," Scholarly Articles 4553020, Harvard University Department of Economics.
  10. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, vol. 90(4), pages 847-868, September.
  11. Albert Saiz, 2002. "Democracy to the road: the political economy of potholes," Working Papers 02-17, Federal Reserve Bank of Philadelphia.
  12. Wilson, Sven E., 2011. "Chasing Success: Health Sector Aid and Mortality," World Development, Elsevier, vol. 39(11), pages 2032-2043.
  13. Gauri, Varun & Khaleghian, Peyvand, 2002. "Immunization in Developing Countries: Its Political and Organizational Determinants," World Development, Elsevier, vol. 30(12), pages 2109-2132, December.
  14. Canning, David, 1998. "A Database of World Stocks of Infrastructure, 1950-95," World Bank Economic Review, World Bank Group, vol. 12(3), pages 529-47, September.
  15. Hansen, Henrik & Tarp, Finn, 2000. "Aid and Growth Regressions," MPRA Paper 62288, University Library of Munich, Germany.
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