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Aide Au Developpement Et Information Asymetrique : Une Analyse Principal-Agent

Author

Listed:
  • Maher GORDAH

    (Universite de Nice-Sophia Antipolis, GREDEG UMR CNRS)

  • Thomas LE TEXIER

    (Universite de Rennes 1, CREM UMR CNRS)

Abstract

In recent years some critiques toward the efficiency of foreign aid have appeared in the economic literature. The allocation of foreign aid toward corrupt governments induces the failure of development policies. Donors have to control the use of aid in order to avoid the risk of kleptocracy. Our work is based on the role of the principal-agent model as a tool to analyze the allocating of foreign aid. We use the principal-agent model to formalize the problem of aid efficiency. We find that foreign aid allocation without any coordination between donors induces inefficiency in the setting out of development policies.

Suggested Citation

  • Maher GORDAH & Thomas LE TEXIER, 2011. "Aide Au Developpement Et Information Asymetrique : Une Analyse Principal-Agent," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 34, pages 163-180.
    • Handle: RePEc:tou:journl:v:34:y:2011:p:163-180
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    INFORMATION ASYMETRIQUE; DEVELOPPEMENT; AIDE; PRINCIPAL-AGENT;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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