Aid Competition – a Simple Agent-Based Model of Competition for Financial Aid

Abstract

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.

Keywords

• Aid
• agent-based modelling
• competition