Abstract

http://ssrn.com/abstract=980562
 
 

References (34)



 


 



Pointing Fingers: Monitoring, Evolution and Efficiency Among 15 Middlemen


David Zetland


Leiden University - Leiden University College

April 15, 2007


Abstract:     
International aid travels from donor to recipient through a chain of middlemen. Middlemen play two roles: as agents delivering aid and as principals monitoring other middlemen delivering aid. As the quality of middlemen falls, shirking (theft) increases, and aid effectiveness falls. While quality has an unambiguous, positive impact, the relative effectiveness of different monitoring techniques is not obvious.

I compare different monitoring techniques in simulations of multiple middlemen interacting over many periods. Simulations improve our intuitive understanding of non-equilibrium dynamics and evolution; they also help us rank monitoring techniques. The most-efficient monitoring technique - tolerating some but not too much waste - performs better than either overly-strict or more-clever alternatives.

Number of Pages in PDF File: 15

Keywords: International development aid, monitoring, moral hazard

JEL Classification: F35, O19

working papers series





Download This Paper

Date posted: April 16, 2007  

Suggested Citation

Zetland, David, Pointing Fingers: Monitoring, Evolution and Efficiency Among 15 Middlemen (April 15, 2007). Available at SSRN: http://ssrn.com/abstract=980562 or http://dx.doi.org/10.2139/ssrn.980562

Contact Information

David Zetland (Contact Author)
Leiden University - Leiden University College ( email )
P.O. Box 13228
Den Haag, 2501EE
Netherlands
Feedback to SSRN


Paper statistics
Abstract Views: 556
Downloads: 59
Download Rank: 222,619
References:  34
People who downloaded this paper also downloaded:
1. Gift Exchange in a Multi-Worker Firm
By Sandra Maximiano, Randolph Sloof, ...

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.360 seconds