NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Barrett E. Kirwan

310 Mumford Hall
1301 W. Gregory
Urbana, Illinois 61801

E-Mail: no email available
Institutional Affiliation: Amazon

NBER Working Papers and Publications

November 2016Does The Samaritan's Dilemma Matter? Evidence From U.S. Agriculture
with Tatyana Deryugina: w22845
The Samaritan’s dilemma posits a downside to charity: recipients may rely on free aid instead of their own efforts. Anecdotally, the expectation of free assistance is thought to be important for decisions about insurance and risky behavior in numerous settings, but reliable empirical evidence is scarce. We estimate whether the Samaritan’s dilemma exists in U.S. agriculture, where both private crop insurance and frequent federal disaster assistance are present. We find that bailout expectations are qualitatively and quantitatively important for the insurance decision. Furthermore, aid expectations reduce both expenditure on farm inputs and subsequent crop revenue.

Published: Tatyana Deryugina & Barrett Kirwan, 2018. "DOES THE SAMARITAN'S DILEMMA MATTER? EVIDENCE FROM U.S. AGRICULTURE," Economic Inquiry, vol 56(2), pages 983-1006. citation courtesy of

 
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