01941cas a2200253 a 4500 AALejournalIMF003948 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451862744 1018-5941 BD-DhAAL BD-DhAAL Mourmouras, Alex. Foreign Aid Policy and Sources of Poverty : A Quantitative Framework / Alex Mourmouras, Peter Rangazas. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The econometric literature has been unable to establish a robust association between foreign aid and growth and poverty reduction. In this paper we argue that aid effectiveness must be assessed using methods that go beyond cross-country regressions. We calibrate a dynamic general equilibrium model that is capable of generating large income gaps between rich and poor countries. The model quantifies three sources of poverty: (i) lack of access to international capital, (ii) low schooling and high fertility (a poverty trap), and (iii) antigrowth domestic fiscal policy. We analyze policies designed to address each source of poverty and estimate and compare the aid cost of implementing the different policies. The policies differ dramatically in the extent and timing of their growth effects, and in the aid cost of their implementation. Mode of access: Internet Rangazas, Peter. IMF Working Papers; Working Paper ; No. 2006/014 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/014/001.2006.issue-014-en.xml IMF e-Library