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International charity under asymmetric information

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  • Calmette, Marie-Francoise
  • Kilkenny, Maureen

Abstract

International charity is often subject to moral hazard and adverse selection problems. We show that the burden of informational asymmetries are borne by the most needy countries, even when charities design incentive contracts which limit the rents that some countries can extract.
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Suggested Citation

  • Calmette, Marie-Francoise & Kilkenny, Maureen, 2001. "International charity under asymmetric information," Economics Letters, Elsevier, vol. 74(1), pages 107-111, December.
    • Handle: RePEc:eee:ecolet:v:74:y:2001:i:1:p:107-111
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    Cited by:

    1. Alessia Isopi & Fabrizio Mattesini, 2009. "Good Donors or Good Recipients? A Repeated Moral Hazard Model of Aid Allocation," Discussion Papers 09/10, University of Nottingham, CREDIT.

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