Economics Research Institute Study Paper
Utah State University Department of Economics
We examine whether food aid acts as a disincentive to agricultural production in recipient economies. Since structural deficiencies of markets are a central reason why low-income agrarian economies receive food aid, we adopt a modeling framework that accommodates market imperfections. Our nonseparable representative household model highlights the factor market effects of food aid overlooked in conventional, Schultzian analyses.
Mohapatra, Sandeep; Barrett, Christopher B.; Snyder, Donald L.; and Biswas, Basudeb, "Does Food Aid Really Discourage Food Production?" (1996). Economic Research Institute Study Papers. Paper 101.