Suggest to your student that s/he read Sweet Charity by Jan Poppendieck.
It's sociology, not economics, but it gets the point across.

Joel Blau

Original Message:
-----------------
From: soula avramidis [EMAIL PROTECTED]
Date: Tue, 28 Jun 2005 03:50:13 -0700
To: [email protected]
Subject: Re: Query on relative prices


It is not the dort of question I ask. But I have a zealous free market
student who thinks that distrbution of food in kind would not distort the
beautiful market mechanism and hence lead to more positive outcomes... It
is wooly question... becsuase the impact on the budget would be the same.

Robert Scott Gassler <[EMAIL PROTECTED]> wrote:Properly done, either could
encourage production. A subsidy would allow people more choice of what to
eat.

At 08:32 AM 6/28/05, you wrote:
In a country where part of the population is suffering from malnutrition,
which is the better policy, a subsidy on basic foods or a hand out in kind?
which of these policies will affect relative prices in a way that
encourages/discourages food production?





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