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1、US Food Aid and Civil ConflictBy Nathan Nunn and Nancy QianDifficulties: reverse causality and joint determination (P1631,3 paragraph)Aim: estimating the causal effect of US food aid on conflictfood aid conflict ?Strategy: exploit two sources of variationLast years US wheat production(time variation
2、) a countrys likelihood of being a US food aid recipient(cross-sectional variation)= Instrument in baseline estimates(for the amount of food aid received by a country in a given year)US wheat production avg. prob of any US food aidEmpirical Strategyfirst consider the simple case where we use lagged
3、US wheat production (uninteracted) as an instrument for food aid:C irt , :equals one if there is conflict in country i during year t.F irt : the quantity of wheat aid shipped from the US to recipient i in year t.P t1 :the amount of US wheat production in the previous year, serves as the instrument.X
4、 irt :vector of country-year covariates, r Y t denotes region-specific time trends and ir denotes country fixed effects.second stagefirst stage Exclusion restriction (P1637,5 paragraph)instrumenting for aid with the interaction term is similar to a DID estimation strategy.Assumption:conflict US food
5、 aid US wheat production avg. prob of any US food aidworld price of wheatthe weather condition in aid-recipient countriesDescriptive StatisticsDescriptive StatisticsAll of the figures foreshadow the main results by showing that US wheat production is associated with more conflict among regular US fo
6、od aid recipients but not among irregular recipients.Baseline EstimatesPanel A:OLSzore and insignificant.Panel B:reduced-form4 concernsPanel D: first stage167.4/1000MTPanel C: positive and significant7 percentage pointsUninteracted InstrumentControlling for Lagged Conflictcapture the inherent persis
7、tence of conflicts Two falsification tests1.using most widely grown crops instead of wheat.2.We estimate alternative first-stage equations where the instrumentis used to predict past food aid rather than future food aid.Additional Robustness Checks1.方程设定2.标准化援助粮变量3.去掉前苏联国家4.排除1971-1973年5.加入滞后和提前一年的援
8、助粮变量6.加入其它粮食援助国MechanismsA. Onset and DurationB. The Scale of ConflictC. Crowding-Out of Other AidD. Crowding-Out of Domestic ProductionCrowding out domestic production lowering the potential incomes of farmers,causing them to move into conflict-related activitiesHeterogeneous Effects of Food Aidwhe
9、ther the effects of food aid are heterogeneous across different contexts, the results of which can help guide policy discussions and future studies on food aid. I ir :particular characteristics of countries.we use a straightforward proxy for a countrys propensity for peace: an indicator variable tha
10、t equals one if there was no conflict in the last five, ten, fifteen, or twenty years in country i.Therefore, our baseline estimates appear to be driven solely by countries with a recent history of conflict.We consider the influences of factors that may contribute to recent conflict. We focus on fac
11、tors that emerge most frequently in the literature:income, political institutions, ethnic diversity, and natural resource dependenceI ir that equals one if the country characteristic (averaged over all time periods, when relevant) is greater than the median among countries in the sample.Conclusion1.
12、Our findings show that the concerns of critics are very real and that US food aid indeed promotes civil conflict on average.2.The effects we find are due to aid prolonging existing conflicts.3.For policy makers, our results should not be interpreted in isolation, but should be taken as one effect among many. For example, our results do not contradict the evidence for the many benefits of emergency
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