The paper presents a theoretical and empirical analysis of a donor's choice of the composition of unrestricted and in-kind/restricted transfers to a recipient and how this composition is adjusted in response to changes in the moral hazard behavior of the recipient. In-kind or restricted...

Economists typically evaluate policies based on how such policies affect individuals' utilities. We follow this approach by taking a welfarist view of the USA's espoused policy of promoting liberty in other parts of the world. However, we take a nuanced view by investigating the type of welfare...