I am very grateful to the editor, Jonathan Temple, and three anonymous referees for useful comments and suggestions. I also thank Edward Miguel, Bill Easterly, David Card, Ernesto Dal Bó, Hunt Allcott, Elizabeth Tipton, Vinci Chow, Willa Friedman, Xing Huang, Michaela Pagel, Steven Pennings, Edson Severnini, seminar participants at the University of California, Berkeley, Columbia University, New York University, the World Bank, Princeton University, the University of Toronto, the London School of Economics, Cornell University, the University of Ottawa, the Stockholm School of Economics, and participants at the 2015 ASSA meeting and 2013 Association for Public Policy Analysis and Management Fall Research Conference for feedback on an earlier draft of this paper. I am also grateful for the work put in by many at AidGrade to create the data set used in this paper, including Bobbie Macdonald, Diana Stanescu, Cesar Augusto Lopez, Jennifer Ambrose, Naomi Crowther, Timothy Catlett, Joohee Kim, Gautam Bastian, Christine Shen, Taha Jalil, Risa Santoso and Catherine Razeto.
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