LEADER 05217oam 22011534 450 001 9910788239103321 005 20230721045631.0 010 $a1-4623-8910-4 010 $a1-4527-7027-1 010 $a1-282-84056-8 010 $a9786612840562 010 $a1-4518-6962-2 035 $a(CKB)3170000000055012 035 $a(EBL)1607849 035 $a(SSID)ssj0001488371 035 $a(PQKBManifestationID)11805053 035 $a(PQKBTitleCode)TC0001488371 035 $a(PQKBWorkID)11430473 035 $a(PQKB)11542031 035 $a(OCoLC)815737074 035 $a(MiAaPQ)EBC1607849 035 $a(IMF)WPIEE2008101 035 $a(EXLCZ)993170000000055012 100 $a20020129d2008 uf 0 101 0 $aeng 135 $aurcnu|||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aWelfare Gains of Aid Indexation in Small Open Economies /$fAnubha Dhasmana 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2008. 215 $a1 online resource (40 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/08/101 300 $aDescription based upon print version of record. 311 $a1-4519-1416-4 320 $aIncludes bibliographical references. 327 $aContents; 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 327 $a7. Welfare gains from indexed Aid 4. Stationary capital distribution; 8. Welfare gains from indexed Aid; 9. Welfare gains from indexed Aid; References; References 330 3 $aForeign aid flows to poor, aid-dependent economies are highly volatile and pro-cyclical. Shortfalls in aid coincide with shortfalls in GDP and government revenues. This increases the consumption volatility in aid dependent countries, thereby causing substantial welfare losses. This paper finds that indexing aid flows to exogenous shocks like a change in the terms of trade can significantly improve the welfare of aid-dependent country by lowering its output and consumption volatility. Compared to the benchmark specification with stochastic aid flows, indexation of aid flows to terms of trade shocks can reduce the cost of business cycle fluctuations in the recipient country by four percent of permanent consumption. Moreover, use of indexed aid can allow donors to reduce the aid flows by three percent without lowering the level of welfare in the recipient country. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2008/101 606 $aEconomic assistance$zDeveloping countries$xEconometric models 606 $aEconomic development$zDeveloping countries$xEconometric models 606 $aBusiness cycles$zDeveloping countries$xEconometric models 606 $aInvestments: Commodities$2imf 606 $aExports and Imports$2imf 606 $aMacroeconomics$2imf 606 $aForeign Aid$2imf 606 $aEmpirical Studies of Trade$2imf 606 $aMacroeconomics: Consumption$2imf 606 $aSaving$2imf 606 $aWealth$2imf 606 $aAgriculture: General$2imf 606 $aTrade: General$2imf 606 $aInternational economics$2imf 606 $aInvestment & securities$2imf 606 $aAid flows$2imf 606 $aTerms of trade$2imf 606 $aConsumption$2imf 606 $aAgricultural commodities$2imf 606 $aExports$2imf 606 $aEconomic assistance$2imf 606 $aEconomic policy$2imf 606 $anternational cooperation$2imf 606 $aEconomics$2imf 606 $aFarm produce$2imf 607 $aBurkina Faso$2imf 615 0$aEconomic assistance$xEconometric models. 615 0$aEconomic development$xEconometric models. 615 0$aBusiness cycles$xEconometric models. 615 7$aInvestments: Commodities 615 7$aExports and Imports 615 7$aMacroeconomics 615 7$aForeign Aid 615 7$aEmpirical Studies of Trade 615 7$aMacroeconomics: Consumption 615 7$aSaving 615 7$aWealth 615 7$aAgriculture: General 615 7$aTrade: General 615 7$aInternational economics 615 7$aInvestment & securities 615 7$aAid flows 615 7$aTerms of trade 615 7$aConsumption 615 7$aAgricultural commodities 615 7$aExports 615 7$aEconomic assistance 615 7$aEconomic policy 615 7$anternational cooperation 615 7$aEconomics 615 7$aFarm produce 676 $a338.91 700 $aDhasmana$b Anubha$01463966 801 0$bDcWaIMF 906 $aBOOK 912 $a9910788239103321 996 $aWelfare Gains of Aid Indexation in Small Open Economies$93673500 997 $aUNINA