Should Aid Reward Good Outcomes? Optimal Contracts in a Repeated Moral Hazard Model of Foreign Aid Allocation
Isopi AlessiaMattesini Fabrizio
CEIS Working Papers
We consider in this paper a repeated moral hazard model
where a donor, characterized both by altruistic and non altruistic
motives, finances a three periods poverty eradication project.
In order to model the significant problems that donors face in
the ac
Number: 236
Date: Thursday, June 1, 2006
Revision Date: Thursday, June 1, 2006