05436oam 22012494 450 991096852630332120250426110503.0978661284056297814623891001462389104978145277027714527702719781282840560128284056897814518696201451869622(CKB)3170000000055012(EBL)1607849(SSID)ssj0001488371(PQKBManifestationID)11805053(PQKBTitleCode)TC0001488371(PQKBWorkID)11430473(PQKB)11542031(OCoLC)815737074(MiAaPQ)EBC1607849(IMF)WPIEE2008101(IMF)WPIEA2008101WPIEA2008101(EXLCZ)99317000000005501220020129d2008 uf 0engurcnu||||||||txtccrWelfare Gains of Aid Indexation in Small Open Economies /Anubha Dhasmana1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (40 p.)IMF Working PapersIMF working paper ;WP/08/101Description based upon print version of record.9781451914160 1451914164 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 trade shocks can reduce the cost of business cycle fluctuations in the recipient country by four percent of permanent consumption. Moreover, use of indexed aid can allow donors to reduce the aid flows by three percent without lowering the level of welfare in the recipient country.IMF Working Papers; Working Paper ;No. 2008/101Economic assistanceDeveloping countriesEconometric modelsEconomic developmentDeveloping countriesEconometric modelsBusiness cyclesDeveloping countriesEconometric modelsAgricultural commoditiesimfAgriculture: GeneralimfAid flowsimfConsumptionimfEconomic assistanceimfEconomic policyimfEconomicsimfEmpirical Studies of TradeimfExports and ImportsimfExportsimfFarm produceimfForeign AidimfInternational economicsimfInvestment & securitiesimfInvestments: CommoditiesimfMacroeconomicsimfMacroeconomics: ConsumptionimfNternational cooperationimfSavingimfTerms of tradeimfTrade: GeneralimfWealthimfBurkina FasoimfEconomic assistanceEconometric models.Economic developmentEconometric models.Business cyclesEconometric models.Agricultural commoditiesAgriculture: GeneralAid flowsConsumptionEconomic assistanceEconomic policyEconomicsEmpirical Studies of TradeExports and ImportsExportsFarm produceForeign AidInternational economicsInvestment & securitiesInvestments: CommoditiesMacroeconomicsMacroeconomics: ConsumptionNternational cooperationSavingTerms of tradeTrade: GeneralWealth338.91Dhasmana Anubha1815993DcWaIMFBOOK9910968526303321Welfare Gains of Aid Indexation in Small Open Economies4371631UNINA