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Food Price Inflation And Consumer Welfare In Ghana

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  • Osei-Asare, Yaw Bonsu
  • Eghan, Mark

Abstract

The paper analyses the effects of food price inflation on Ghanaian households using GLSS-5 household data. Expenditure endogeneity and truncated expenditures were controlled in the estimation process using the “Augmented Regression Approach†and Heckman’s two-stage procedure, respectively. Symmetry and homogeneity conditions were rejected in the unconstrained LA/AIDS model. The study reveals that cereals and bread; fish; vegetables; and roots and tubers will continue to constitute important share of Ghanaian food expenditure as they collectively constitute 67% of future food expenditure. Food price inflation between 2005 and 2011 has eroded real household food purchasing power by 47.18%.

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Bibliographic Info

Article provided by Niğde University, Faculty of Economics and Administrative Sciences in its journal International Journal of Food and Agricultural Economics (IJFAEC).

Volume (Year): 1 (1)
Issue (Month): ()
Pages:

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Handle: RePEc:ags:ijfaec:156140

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Related research

Keywords: Compensating variation; Food price; Inflation; Welfare; Elasticities; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Food Security and Poverty;

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  1. Taljaard, Pieter R. & Alemu, Zerihun Gudeta & van Schalkwyk, Herman D., 2004. "The demand for meat in South Africa: An almost ideal estimation," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(4), December.
  2. Jed Friedman & James Levinsohn, 2002. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology," World Bank Economic Review, World Bank Group, vol. 16(3), pages 397-423, December.
  3. Awudu Abdulai & Devendra K. Jain & Ashok K. Sharma, 1999. "Household Food Demand Analysis in India," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 316-327.
  4. Blundell, Richard & Robin, Jean Marc, 1999. "Estimation in Large and Disaggregated Demand Systems: An Estimator for Conditionally Linear Systems," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 209-32, May-June.
  5. Wodon, Quentin & Tsimpo, Clarence & Coulombe, Harold, 2008. "Assessing the potential impact on poverty of rising cereals prices : the case of Ghana," Policy Research Working Paper Series 4740, The World Bank.
  6. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-83, June.
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