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Conditionality and Endogenous Policy Formation in a Political Setting

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  • Mansoob Murshed

Abstract

The paper examines two issues associated with aid and fiscal policy. First, how best the conditionality behind foreign aid, sometimes non-economic, is complied with in a principal-agent framework. In a multiple task and multiple principal framework, principals are better off cooperating and making the agent's efforts more complementary. Secondly, I examine endogenous policy formation in the context of domestic politics. This involves interaction between policy makers and domestic special interest groups.

Suggested Citation

  • Mansoob Murshed, 2001. "Conditionality and Endogenous Policy Formation in a Political Setting," WIDER Working Paper Series DP2001-92, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2001-92
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2001-92.pdf
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