Evaluating the impact of reforming the food subsidy program in Egypt: A Mixed Demand approach
AbstractFood subsidy is one of the policies considered to protect consumer welfare against food price increases, in particular when the insufficient local production has to be complemented by food imports with volatile prices. Egypt has experienced several "food crises" (the latest in 2008), which put an halt to attempts to reform in depth the system of food subsidies because of social unrest. In this paper, we use a Mixed Demand approach to analyze the consumption structure of Egyptian households. Our model specification takes into consideration the characteristics of the Egyptian food subsidy system, where some food items have predetermined quotas while others are associated with predetermined (subsidized) prices. Price, income and quota elasticities are estimated from the Egyptian family expenditure survey, and welfare change measures are derived by income class. Simulations of various options to eliminate subsidies on selected food items are conducted. We estimate the negative welfare impact of the reforms, especially in the context of increasing food prices, by comparing welfare effects of policy options by income quartiles and by household category (rural, urban).
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.
Bibliographic InfoArticle provided by Elsevier in its journal Food Policy.
Volume (Year): 36 (2011)
Issue (Month): 5 (October)
Contact details of provider:
Web page: http://www.elsevier.com/locate/foodpol
Food subsidy Mixed Demand Policy assessment Egypt;
Other versions of this item:
- Ramadan, Racha & Thomas, Alban, 2011. "Evaluating the impact of reforming the food subsidy program in Egypt: A Mixed Demand approach," Food Policy, Elsevier, vol. 36(5), pages 638-646.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mehta, Aashish & Jha, Shikha & Quising, Pilipinas, 2013. "Self-targeted food subsidies and voice: Evidence from the Philippines," Food Policy, Elsevier, vol. 41(C), pages 204-217.
- Mehta, Aashish & Jha, Shikha, 2014. "Pilferage from opaque food subsidy programs: Theory and evidence," Food Policy, Elsevier, vol. 45(C), pages 69-79.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.