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Nutrient Intake of the Poor and its Implications for the Nutritional Effect of Cereal Price Subsidies: Evidence from China

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  • Shimokawa, Satoru
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    Abstract

    Summary We incorporate habit formation into an analysis of the effect of cereal price changes on the nutrient intake of the poor in China. We find that the poor's nutrient intake responds asymmetrically to declines and increases in cereal prices, and that the asymmetric response of their fat intake may be due to habit formation. Our results also imply that introducing cereal price subsidies can increase their total energy intake by increasing their calorie intake from fat and protein, while ending such subsidies would insignificantly affect their total energy intake, but further increase their calorie intake from fat and protein.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 38 (2010)
    Issue (Month): 7 (July)
    Pages: 1001-1011

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    Handle: RePEc:eee:wdevel:v:38:y:2010:i:7:p:1001-1011

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

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    Keywords: food price nutrition poverty habit formation Asia China;

    References

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    1. Ng, Shu Wen & Zhai, Fengying & Popkin, Barry M., 2008. "Impacts of China's edible oil pricing policy on nutrition," Social Science & Medicine, Elsevier, vol. 66(2), pages 414-426, January.
    2. Philip J. Dawson & Richard Tiffin, 1998. "Estimating the Demand for Calories in India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 80(3), pages 474-481.
    3. Brian W. Gould, 2003. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 85(3), pages 605-617.
    4. David Bowman & Deborah Minehart & Matthew Rabin, 1994. "Loss aversion in a consumption/savings model," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 492, Board of Governors of the Federal Reserve System (U.S.).
    5. Tarozzi, Alessandro, 2005. "The Indian Public Distribution System as provider of food security: Evidence from child nutrition in Andhra Pradesh," European Economic Review, Elsevier, vol. 49(5), pages 1305-1330, July.
    6. Farrar, Curtis, 2000. "A review of food subsidy research at IFPRI," Impact assessments, International Food Policy Research Institute (IFPRI) 12, International Food Policy Research Institute (IFPRI).
    7. Jensen, Robert T. & Miller, Nolan, 2008. "Do Consumer Price Subsidies Really Improve Nutrition?," Working Paper Series rwp08-025, Harvard University, John F. Kennedy School of Government.
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    Cited by:
    1. Jing You & Katsushi S. Imai & Raghav Gaiha, 2014. "Decoding the Growth-Nutrition Nexus in China: Inequality, Uncertainty and Food Insecurity," The School of Economics Discussion Paper Series, Economics, The University of Manchester 1413, Economics, The University of Manchester.

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