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Abstract

The use of food aid in poverty alleviation programs has been hampered by two problems: the inability to target to touseholds in need, and the disincentive effects on agriculture. In this paper, we present econometric estimates of m Almost Ideal Demand System (AIDS) for households in Maputo, Mozambique, and develop a multi-market node! to show that in Maputo, imported yellow maize is not only self-targeting, but that owing to a combination of he low cross-price elasticity with locally produced staples (particularly, white maize) and cross-border trade in food >roducts, the disincentive effects on domestic agriculture have been negligible.

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