Work

Welfare consequences of food prices increases: Evidence from rural Mexico

Year: 2013

Type: article

Abstract: This paper presents an analysis of the welfare consequences of recent increases in food prices in Mexico using micro-level data. We estimate a QUAIDS model of demand for food, using data collected to evaluate the conditional cash transfer program Oportunidades. We show how the poor have been affected by the recent increases and changes in relative prices of foods. We also show how a conditional cash transfer program provides a means of alleviating the problem of increasing staple prices, and simulate the impact of such a policy on household welfare and consumer demand. We contrast this policy with alternative policy responses, such as price subsidies, which distort relative prices and are less well-targeted.

Source: Journal of Development Economics

DOI: 10.1016/j.jdeveco.2013.03.009

Authors: Orazio Attanasio, Vincenzo Di Maro, Valérie Lechene, David Phillips

Institutions: University College London, World Bank

Language: English

Topic: Economics of Agriculture and Food Markets

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: No poverty, Zero hunger, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $4,590