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On the Samaritan’s Dilemma, Foreign Aid, and Freedom

Department of Economics, Florida Atlantic University, Boca Raton, FL 33431, USA
School of Economics, Political and Policy Sciences, University of Texas at Dallas, Richardson, TX 75080, USA
Author to whom correspondence should be addressed.
Economies 2018, 6(4), 53;
Received: 28 August 2018 / Revised: 20 September 2018 / Accepted: 21 September 2018 / Published: 8 October 2018
(This article belongs to the Special Issue Public Choice)
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. View Full-Text
Keywords: Altruism; Leading by example; Policy formulation; Hierarchical games Altruism; Leading by example; Policy formulation; Hierarchical games
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Faria, J.R.; Arce, D. On the Samaritan’s Dilemma, Foreign Aid, and Freedom. Economies 2018, 6, 53.

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