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A welfare measure of consumer vulnerability to rising prices of food imports in the UAE

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  • Azzam, Azzeddine M.
  • Rettab, Belaid

Abstract

The recent and expected continuing rise in food prices has re-ignited concern and discussion in the United Arab Emirates about the country’s vulnerability to food supply shocks. Defining vulnerability as the compensating variation relative to household income, we find that although UAE households in the lowest income quintile spend on food on average less than a quarter of what households in the highest income quintile spend, the former are 3.5 times more vulnerable to rising prices of food imports than the latter.

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File URL: http://www.sciencedirect.com/science/article/pii/S0306919212000541
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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 37 (2012)
Issue (Month): 5 ()
Pages: 554-560

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Handle: RePEc:eee:jfpoli:v:37:y:2012:i:5:p:554-560

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Web page: http://www.elsevier.com/locate/foodpol

Related research

Keywords: Food imports; Vulnerability; Welfare; Compensating variation; Price caps; United Arab Emirates;

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  1. Willig, Robert D, 1976. "Consumer's Surplus without Apology," American Economic Review, American Economic Association, vol. 66(4), pages 589-97, September.
  2. Besanko, David & Donnenfeld, Shabtai & White, Lawrence J, 1987. "Monopoly and Quality Distortion: Effects and Remedies," The Quarterly Journal of Economics, MIT Press, vol. 102(4), pages 743-67, November.
  3. Raymon, Neil, 1983. "Price ceilings in competitive markets with variable quality," Journal of Public Economics, Elsevier, vol. 22(2), pages 257-264, November.
  4. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  5. Lee, Jonq-Ying & Brown, Mark G., 1996. "The Potential For High-Value Agricultural Products Under The North American Free Trade Agreement: The Case Of Beef In Mexico And Canada: Comment," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(02), December.
  6. Huang, Kuo S., 1993. "Measuring The Effects Of U.S Meat Trade On Consumers' Welfare," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(01), July.
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