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What We Miss By Missing Data: Aid Effectiveness Revisited

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Abstract

Missing data is a major problem in empirical development economics, as it may entail efficiency losses as well as biased results. This is an issue within the literature that investigates the effect of foreign aid on welfare. Using multiple imputation techniques, we address these problems and find lower aid effectiveness than previous studies suggest. In addition, imputation allows for comparison of different welfare indicators within the same framework. We find that if aid effectiveness is evaluated based on such indicators, the respective indicator choice can matter for the results.

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  • Anja Breitwieser & Katharina Wick, 2013. "What We Miss By Missing Data: Aid Effectiveness Revisited," Vienna Economics Papers vie1302, University of Vienna, Department of Economics.
    • Handle: RePEc:vie:viennp:vie1302
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    Cited by:

    1. Eugenie W. H. Maïga, 2014. "Does Foreign Aid in Education Foster Gender Equality in Developing Countries?," WIDER Working Paper Series wp-2014-048, World Institute for Development Economic Research (UNU-WIDER).
    2. Axel Dreher & Vera Eichenauer & Kai Gehring & Vera Z. Eichenauer, 2013. "Geopolitics, Aid and Growth," CESifo Working Paper Series 4299, CESifo.
    3. Maiga, Eugenie W.H., 2014. "Does foreign aid in education foster gender equality in developing countries?," WIDER Working Paper Series 048, World Institute for Development Economic Research (UNU-WIDER).

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    More about this item

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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