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The Impact of Food Aid on Food Subsidies in Recipient Countries

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  • Hoffman, Wendy
  • Gardner, Bruce
  • Otto, Daniel

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.

Suggested Citation

  • Hoffman, Wendy & Gardner, Bruce & Otto, Daniel, 1994. "The Impact of Food Aid on Food Subsidies in Recipient Countries," Staff General Research Papers Archive 11026, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:11026
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    1. repec:gam:jsusta:v:9:y:2017:i:10:p:1716-:d:113150 is not listed on IDEAS
    2. Alston, Julian M. & Smith, Vincent H. & Acquaye, Albert K.A. & Hosseini, Safdar, 1999. "Least-cost cheap-food policies: some implications of international food aid," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 20(3), May.
    3. Barrett, Christopher B., 2002. "Food Aid And Commercial International Food Trade," Working Papers 14742, Cornell University, Department of Applied Economics and Management.

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