This paper examines how macroeconomic policies can be managed to accommodate a large inflow of foreign aid to combat the HIV/AIDS epidemic and still maintain macroeconomic stability. Because of the daunting scale of this epidemic, funds need to be disbursed urgently in order to contain its spread, yet some economists worry that rapidly scaling up foreign assistance for this purpose will cause i...

Virtually all previous studies of domestic economic redistribution find white Americans to be less enthusiastic about welfare for black recipients than for white recipients. When it comes to foreign aid and international redistribution across racial lines, I argue that prejudice manifests not in an uncharitable, resentful way but in a paternalistic way because intergroup contact is minimal and ...

We live in a new reality of aid. Rich countries delivered $3.2 trillion of aid to poor countries between 1960 and 2008, and aid is a $200 billion industry today. Despite disputes and upheavals , the core of the aid architecture—the set of rules governing aid flows—has changed little over the past few decades. Now the new dynamics of aid may be too strong to resist fundamental change. Delivering...

Departing from explanations that involve either altruistic or political motivations of donors, we link a donor’s willingness to give aid to economic incentives and returns. Since targeted aid might increase the returns from trade and FDI linkages for donors, there exists a non-altruistic basis for helping poor countries. We explore this idea by developing a two-country dynamic strategic interac...

The literature on foreign assistance generally holds that multilateral aid is preferable to bilateral aid, but establishes this primarily through highly aggregated cross‐national time‐ series data. We investigate this topic experimentally from the perspective of those whom the foreign aid directly affects: recipient citizens. We thus report results of a survey exper‐ iment with behavioral outco...