The Impact of Food Aid on Food Subsidies in Recipient Countries

Wendy Hoffman, Bruce Gardner, Richard E. Just and Daniel Otto

Staff General Research Papers from Iowa State University, Department of Economics

Abstract: A model in which policy makers maximize a weighted welfare function of producer, consumer, and taxpayer groups is applied to explain the effects of food aid receipts on food policies in the countries receiving food aid. Consumer subsidies for wheat in nine countries receiving food aid are examined during the 1955-83 period. Econometric results indicate food aid increases domestic food subsidies in the recipient countries, but that other factors (development, country-specific factors) are more important in determining subsidy level.

Date: 2003-11-24
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Published in American Journal of Agricultural Economics, November 1994, Vol. 76, No. 4, pp. 733-743.

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Persistent link: http://EconPapers.repec.org/RePEc:isu:genres:11026

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