AID COMPETITION- A SIMPLE AGENT-BASED
MODEL OF COMPETITION FOR FINANCIAL AID

András Margitay-Becht1

1Budapest University of Technology and Economics
  Budapest, Hungary

Received: 1 May, 2006. Accepted: 15 January, 2007.

SUMMARY

The research into the effectiveness of financial aid is gaining momentum lately. Some say it is ineffective, some say it could be effective, but all seem to agree that some of its aspects are currently unmapped.

This article aims at showing a rather simplistic agent-based model that might hint at a possible useful approach of the issue. It will be shown, that the donor policies do influence stability, convergence and the path of economic growth.

KEY WORDS

aid, agent-based modelling, competition

CLASSIFICATION

JEL: C65, I38

Full paper as pdf version.