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

1
Department of Economics, Florida Atlantic University, Boca Raton, FL 33431, USA
2
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; https://doi.org/10.3390/economies6040053
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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