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International charity under asymmetric information

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  • Calmette, Marie-Francoise
  • Kilkenny, Maureen

Abstract

International charity is often subject to moral hazard and adverse selection problems. We show that the burden of informational asymmetries are borne by the most needy countries, even when charities design incentive contracts which limit the rents that some countries can extract.
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Suggested Citation

  • Calmette, Marie-Francoise & Kilkenny, Maureen, 2001. "International charity under asymmetric information," Economics Letters, Elsevier, vol. 74(1), pages 107-111, December.
    • Handle: RePEc:eee:ecolet:v:74:y:2001:i:1:p:107-111
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    3. Alberto Alesina & Beatrice Weder, 2002. "Do Corrupt Governments Receive Less Foreign Aid?," American Economic Review, American Economic Association, vol. 92(4), pages 1126-1137, September.
    4. Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Labor Supply and Targeting in Poverty Alleviation Programs," The World Bank Economic Review, World Bank, vol. 8(2), pages 191-211, May.
    5. Cashel-Cordo, Peter & Craig, Steven G, 1997. "Donor Preferences and Recipient Fiscal Behavior: A Simultaneous Analysis of Foreign Aid," Economic Inquiry, Western Economic Association International, vol. 35(3), pages 653-671, July.
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    Cited by:

    1. Alessia Isopi & Fabrizio Mattesini, 2009. "Good Donors or Good Recipients? A Repeated Moral Hazard Model of Aid Allocation," Discussion Papers 09/10, University of Nottingham, CREDIT.

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