The food aid curse arises because humanitarian aid agencies that are devoted to save lives cannot commit not to intervene in case of man-made famines. We propose a solution to this curse in models of agrarian economies with kleptocratic governments.

The authors examine the effects that famine relief efforts (food aid) can have in regions undergoing civil war. In the model, warlords seize a fraction of all aid entering the region. How much they can loot affects their choice of army size; therefore the manner in which aid is delivered...

The goal of this article is to establish if unemployment insurance policies are more generous in Europe than in the United States, and by how much. We take the examples of France and one particular American state, Ohio, and use the methodology of Pallage, Scruggs and Zimmermann (2008) to find a...

Gains from trade come from a certain degree of specialization among trade partners. Specialization in the case of an agriculture-based developing country might be feared to imply a higher reliance than ever on low skill labor. Trade might thus be seen as a step away from the much awaited...

This paper investigates the importance of market incompleteness by comparing the rates of risk aversion estimated from complete and incomplete markets environments. For the incomplete-markets case, we use consumption data for the 50 US states. We find that the rate of risk aversion under the...