Improving Food Aid: What Reforms Would Yield the Highest Payoff?

This paper develops an integrated model of the food aid distribution chain, from donor appropriations through operational agency programming decisions to household consumption choices. We use this model to simulate alternative policies and to perform sensitivity analysis to establish how varying und...

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Bibliographic Details
Published in:World development 2008-07, Vol.36 (7), p.1152-1172
Main Authors: Lentz, Erin C., Barrett, Christopher B.
Format: Article
Language:English
Subjects:
Aid finance
Allocative efficiency
cargo preference
Consumption
Cost
Development economics
Food
Food aid
Foreign aid
Households
Humanitarian aid
local and regional purchases
monetization
Public policy
Reforms
Sensitivity analysis
Studies
targeting
tying
U.S.A
United States
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Summary:This paper develops an integrated model of the food aid distribution chain, from donor appropriations through operational agency programming decisions to household consumption choices. We use this model to simulate alternative policies and to perform sensitivity analysis to establish how varying underlying conditions—for example, delivery costs, the political additionality of food, targeting efficacy—affect optimal food aid policy for improving the well-being of food insecure households. We find that improved targeting by operational agencies is crucial to advancing food security objectives. At the donor level, the key policy variable under most model parameterizations is ocean freight costs associated with cargo preference restrictions on the US food aid.
ISSN:0305-750X
1873-5991
DOI:10.1016/j.worlddev.2007.06.018