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Moral Hazard and the Composition of Transfers: Theory with an Application to Foreign Aid

Amegashie, J. Atsu et al.
Munich Personal RePEc Archive · Reports
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corruption
The paper presents a theoretical and empirical analysis of a donor’s choice of the composition of unrestricted and in-kind/restricted transfers to a recipient and how this composition is adjusted in response to changes in the moral hazard behavior of the recipient. In-kind or restricted transfers m
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