In this paper, we investigate efficiency differences between income and in-kind transfers asdistribution mechanisms of foreign aid to weakest-link international public goods in a laboratoryenvironment. We find that if there is relatively small difference in country size, then incometransfers seem to provide a higher provision of the international public good, and thus higheroverall welfare level than that of in-kind transfers. However, if there is a large disparity incountry size, then in-kind transfers appear to provide a higher level of IPG provision and higheraccompanying global welfare.
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