The Honest Indigent

I'm not sure what we want to do with this information, but it certainly corroborates my previous post.

Two issues are brought to the forefront:

1. Is it more efficient to transfer cash or goods in-kind to the homeless? Presumably this guy will trade in whatever he is given at whatever the discount, for beer, thereby reducing the initial value of an in-kind transfer.

2. Should the philanthropist necessarily get to define the choice set of the gift regardless of the recipient's preferences? In other words, is there a place for paternalism here? Does father know best?


Confession: I did give him money. I am not categorically against giving money to people who ask for it on the street. In this case, however, I felt like I owed him something for the picture.