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Are Food Price Differences in EU Member States a Result of the Penn Effect?

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  • Fousekis, Panos

Abstract

Panel data from 14 EU member states and non parametric techniques are used in this paper to investigate the relationship between food prices and real per capita incomes. The empirical results suggest that the Penn Effect largely holds for Total Food prices but not for the prices of certain among the seven disaggregate food commodities considered. In particular, for Cereals, for Fats and Oils, and for Other food products poorer countries are likely to face prices no lower than those prevailing in richer ones

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Bibliographic Info

Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

Volume (Year): 10 (2009)
Issue (Month): 2 (June)
Pages:

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Handle: RePEc:ags:aergaa:58057

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Keywords: Food Prices; Living Standards; EU; Agricultural and Food Policy; Q11; C14;

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  1. Ronald MacDonald & Luca Ricci, 2001. "PPP and the Balassa Samuelson Effect: the Role of the Distribution Sector," CESifo Working Paper Series 442, CESifo Group Munich.
  2. Johnson, Paul A., 2000. "A nonparametric analysis of income convergence across the US states," Economics Letters, Elsevier, vol. 69(2), pages 219-223, November.
  3. Quah, Danny T, 1997. " Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
  4. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
  5. Ronald MacDonald & Luca Antonio Ricci, 2001. "PPP and the Balassa Samuelson Effect," IMF Working Papers 01/38, International Monetary Fund.
  6. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975, October.
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