03472nam 2200661 450 991046400980332120181114221844.01-4623-8910-41-4527-7027-11-282-84056-897866128405621-4518-6962-2(CKB)3170000000055012(EBL)1607849(SSID)ssj0001488371(PQKBManifestationID)11805053(PQKBTitleCode)TC0001488371(PQKBWorkID)11430473(PQKB)11542031(OCoLC)815737074(MiAaPQ)EBC1607849(EXLCZ)99317000000005501220140227h20082008 uy 0engurcnu||||||||txtccrWelfare gains of aid indexation in small open economies /Anubha Dhasmana ; authorized for distribution by Andrew Berg[Washington, District of Columbia] :International Monetary Fund,2008.©20081 online resource (40 p.)IMF Working PapersIMF working paper ;WP/08/101Description based upon print version of record.1-4519-1416-4 Includes bibliographical references.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 specifications7. Welfare gains from indexed Aid 4. Stationary capital distribution; 8. Welfare gains from indexed Aid; 9. Welfare gains from indexed Aid; References; ReferencesForeign 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 tradeIMF Working PapersEconomic assistanceDeveloping countriesEconometric modelsEconomic developmentDeveloping countriesEconometric modelsBusiness cyclesDeveloping countriesEconometric modelsElectronic books.Economic assistanceEconometric models.Economic developmentEconometric models.Business cyclesEconometric models.338.91Dhasmana Anubha872384Berg Andrew861129MiAaPQMiAaPQMiAaPQBOOK9910464009803321Welfare gains of aid indexation in small open economies2273589UNINA