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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.
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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...
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Restricting attention to economic environments, we study implementation under perturbed better-response dynamics (BRD). A social choice function (SCF) is implementable in stochastically stable strategies of perturbed BRD whenever the only outcome supported by the stochastically stable strategies...
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