Is Foreign Aid Paternalistic?

Breman, Anna (author): Stockholm School of Economics,Handelshögskolan i Stockholm

Granström, Ola (author): Stockholm School of Economics,Handelshögskolan i Stockholm

(creator_code:org_t)

Abstract Subject headings

We experimentally investigate whether donors are paternalistically altruistic when contributing to foreign aid. In a double-blind experiment, a subject chooses whether to make a monetary or a tied transfer (mosquito nets) to an anonymous household in Zambia. Recipients have revealed preferences for money, as their willingness to pay for mosquito nets is positive but below the market price. A monetary transfer will therefore preserve the household's preferences while a tied transfer is paternalistic. The mean donation of mosquito nets differs significantly from zero, thereby implying paternalistic preferences among donors. Paternalistic donors constitute 65 percent of the total sample, whereas purely altruistic donors constitute 15 percent. We conclude that health-focused paternalistic rather

About the subject

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