By limiting the scope for substitution between commodities, other things equal quantity constraints raise the cost of living. Thus, rationed families have higher povery lines than unconstrained ones. This heterogeneity in both resources and poverty lines means that, in principle, bivariate...

This paper explores the welfare effects of international subsidies designed to expedite the production of global public goods. It distinguishes between the impact subsidies exert on behaviour and the impact subsidies exert on welfare. Subsidies that encourage recipients to contribute to the...