Anatomy of a crisis: the causes and consequences of surging food prices
AbstractAlthough the potential causes and consequences of recent rising international food prices have attracted widespread attention, many existing appraisals are superficial and/or piecemeal. This article attempts to provide a more comprehensive review of these issues based on the best and most recent research, as well as on fresh theoretical and empirical analysis. We first analyze the causes of the current crisis by considering how well standard explanations hold up against relevant economic theory and important stylized facts. Some explanations turn out to hold up much better than others, especially rising oil prices, the depreciation of the U.S. dollar, biofuels demand, and some commodity-specific explanations. We then provide an appraisal of the likely macro- and microeconomic impacts of the crisis on developing countries. We observe a large gap between macro and micro factors, which, when identifying the most vulnerable countries, often point in different directions. We conclude with a brief discussion of what ought to be learned from this crisis. Copyright (c) 2008 International Association of Agricultural Economists.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by International Association of Agricultural Economists in its journal Agricultural Economics.
Volume (Year): 39 (2008)
Issue (Month): s1 (November)
Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0169-5150
More information through EDIRC
Other versions of this item:
- Headey, Derek & Fan, Shenggen, 2008. "Anatomy of a crisis: The causes and consequences of surging food prices," IFPRI discussion papers 831, International Food Policy Research Institute (IFPRI).
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Baffes & Bruce Gardner, 2003. "The transmission of world commodity prices to domestic markets under policy reforms in developing countries," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(3), pages 159-180.
- Bezemer, Dirk & Headey, Derek, 2008.
"Agriculture, Development, and Urban Bias,"
Elsevier, vol. 36(8), pages 1342-1364, August.
- Cudjoe, Godsway & Breisinger, Clemens & Diao, Xinshen, 2009.
"Local Impacts of a Global Crisis - Food Price Transmission and Poverty Impacts in Ghana,"
2009 Conference, August 16-22, 2009, Beijing, China
51089, International Association of Agricultural Economists.
- Cudjoe, Godsway & Breisinger, Clemens & Diao, Xinshen, 2008. "Local impacts of a global crisis: Food price transmission and poverty impacts in Ghana," IFPRI discussion papers 842, International Food Policy Research Institute (IFPRI).
- Channing Arndt & Rui Benfica & Nelson Maximiano & Antonio M. D. Nucifora & James T. Thurlow, 2008. "Higher fuel and food prices: impacts and responses for Mozambique," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 497-511, November.
- Ahmed, Akhter U. & Hill, Ruth Vargas & Smith, Lisa C. & Wiesmann, Doris M. & Frankenberger, Tim & Gulati, Kajal & Quabili, Wahidand & Yohannes, Yisehac, 2007. "The world's most deprived: Characteristics and causes of extreme poverty and hunger," 2020 vision discussion papers 43, International Food Policy Research Institute (IFPRI).
- von Braun, Joachim & Ahmed, Akhter & Asenso-Okyere, Kwadwo & Fan, Shenggen & Gulati, Ashok & Hoddinott, John & Pandya-Lorch, Rajul & Rosegrant, Mark W. & Ruel, Marie & Torero, Maximo & van Rheenen, Te, 2008. "High food prices: The what, who, and how of proposed policy actions," Policy briefs 1A, International Food Policy Research Institute (IFPRI).
- Ulimwengu, John M. & Workneh, Sindu & Paulos, Zelekawork, 2009. "Impact of soaring food price in Ethiopia: Does location matter?," IFPRI discussion papers 846, International Food Policy Research Institute (IFPRI).
- Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
- Sébastien Dessus & Santiago Herrera & Rafael de Hoyos, 2008.
"The impact of food inflation on urban poverty and its monetary cost: some back-of-the-envelope calculations,"
International Association of Agricultural Economists, vol. 39(s1), pages 417-429, November.
- Dessus, Sebastien & Herrera, Santiago & de Hoyos, Rafael, 2008. "The impact of food inflation on urban poverty and its monetary cost : some back-of-the-envelope calculations," Policy Research Working Paper Series 4666, The World Bank.
- Mitchell, Donald, 2008. "A note on rising food prices," Policy Research Working Paper Series 4682, The World Bank.
- von Braun, Joachim, 2008.
"Rising food prices: What should be done?,"
1, International Food Policy Research Institute (IFPRI).
- Irwin, Scott H. & Garcia, Philip & Good, Darrel L., 2007. "The Performance of Chicago Board of Trade Corn, Soybean, and Wheat Futures Contracts after Recent Changes in Speculative Limits," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9951, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Ng, Francis & Aksoy, M. Ataman, 2008. "Who are the net food importing countries ?," Policy Research Working Paper Series 4457, The World Bank.
- Headey, Derek & Fan, Shenggen, 2008.
"Anatomy of a crisis: The causes and consequences of surging food prices,"
IFPRI discussion papers
831, International Food Policy Research Institute (IFPRI).
- Derek Headey & Shenggen Fan, 2008. "Anatomy of a crisis: the causes and consequences of surging food prices," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 375-391, November.
- Rosen, Stacey L. & Shapouri, Shahla, 2008. "Rising Food Prices Intensify Food Insecurity in Developing Countries," Amber Waves, United States Department of Agriculture, Economic Research Service, February.
- Trostle, Ronald, 2008. "Factors Contributing to Recent Increases in Food Commodity Prices (PowerPoint)," Seminars 43902, USDA Economists Group.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.