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The Impact of Food Aid on Food Subsidies in Recipient Countries


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


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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    References listed on IDEAS

    1. Bruce L. Gardner, 1976. "Futures Prices in Supply Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(1), pages 81-84.
    2. Diewert, W. E., 1973. "Functional forms for profit and transformation functions," Journal of Economic Theory, Elsevier, vol. 6(3), pages 284-316, June.
    3. Lopez, Ramon E, 1985. "Structural Implications of a Class of Flexible Functional Forms for Profit Functions," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(3), pages 593-601, October.
    4. Wallace E. Huffman, 1977. "Allocative Efficiency: The Role of Human Capital," The Quarterly Journal of Economics, Oxford University Press, vol. 91(1), pages 59-79.
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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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