1.

Record Nr.

UNINA9910464009803321

Autore

Dhasmana Anubha

Titolo

Welfare gains of aid indexation in small open economies / / Anubha Dhasmana ; authorized for distribution by Andrew Berg

Pubbl/distr/stampa

[Washington, District of Columbia] : , : International Monetary Fund, , 2008

©2008

ISBN

1-4623-8910-4

1-4527-7027-1

1-282-84056-8

9786612840562

1-4518-6962-2

Descrizione fisica

1 online resource (40 p.)

Collana

IMF Working Papers

IMF working paper ; ; WP/08/101

Altri autori (Persone)

BergAndrew

Disciplina

338.91

Soggetti

Economic assistance - Developing countries - Econometric models

Economic development - Developing countries - Econometric models

Business cycles - Developing countries - Econometric models

Electronic books.

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Contents; I. Introduction; II. Primary Commodity Exports and Price Volatility; III. The Benchmark Model; IV. Model Calibration and Comparative Statics; V. Dynamics; VI. Results; VII. Conclusion; Figures; 1. Resource flow as a percentage of GDP; Tables; 1. Dynamic behavior of Aid; 2. Share of the leading primary commodity export (97-99); 3. Share of the Top Three Primary Commodities, (1997-99); 4. Instability indices of prices of major primary commodities during 1957-1999; 2. Steady state values; 3. Sensitivity analysis; 6. Welfare cost under alternative model specifications

7. Welfare gains from indexed Aid 4. Stationary capital distribution; 8. Welfare gains from indexed Aid; 9. Welfare gains from indexed Aid; References; References



Sommario/riassunto

Foreign aid flows to poor, aid-dependent economies are highly volatile and pro-cyclical. Shortfalls in aid coincide with shortfalls in GDP and government revenues. This increases the consumption volatility in aid dependent countries, thereby causing substantial welfare losses. This paper finds that indexing aid flows to exogenous shocks like a change in the terms of trade can significantly improve the welfare of aid-dependent country by lowering its output and consumption volatility. Compared to the benchmark specification with stochastic aid flows, indexation of aid flows to terms of trade