Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/197121
Authors: 
Faria, Joao Ricardo
Arce, Daniel
Year of Publication: 
2018
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 6 [Year:] 2018 [Issue:] 4/53 [Pages:] 1-17
Abstract: 
This paper presents an extension of the two-period Samaritan's Dilemma in order to analyze the potential for foreign aid to promote freedom. An example is the United States' recent opening towards Cuba. It is shown that a donor nation's dual concern for economic reforms and greater freedoms can exacerbate the Samaritan's Dilemma, even when economic aid is coupled with targets for freedom. By contrast, a policy that is focused on freedom alone can potentially resolve the Samaritan's Dilemma. Such a policy requires the donor to temper the degree of altruism that motivates its provision of economic aid to the recipient nation.
Subjects: 
Altruism
Leading by example
Policy formulation
Hierarchical games
JEL: 
D78
F35
F59
C73
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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