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Soaring food prices and food security: Does the income effect matter?

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  • Pradeepa Malkanthi Korale-Gedara
  • Shyama Ratnasiri
  • Jayatilleke Bandara

Abstract

While the existing literature on rising food prices in recent years has mainly focused on the causes and calculating the number of people falling below the poverty line in developing countries, less attention has been paid to rising food prices and food security in terms of calorie intake. The main objective of this study is to fill this gap using a case study of a developing country, Sri Lanka. In this study, we estimate the change in individual calorie intake associated with food inflation using the Stone--Geary utility function. The impact at national level is assessed using a calorie intake distribution curve. The results demonstrate that the percentage of undernourished population in Sri Lanka is expected to rise rapidly with food inflation on the basis that there is no income increase during the period under consideration. However, the rise in undernourished population is remarkably low when the income effect is taken into consideration.

Suggested Citation

  • Pradeepa Malkanthi Korale-Gedara & Shyama Ratnasiri & Jayatilleke Bandara, 2012. "Soaring food prices and food security: Does the income effect matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 19(18), pages 1807-1811, December.
    • Handle: RePEc:taf:apeclt:v:19:y:2012:i:18:p:1807-1811
    DOI: 10.1080/13504851.2012.667538
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    References listed on IDEAS

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    1. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
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    3. Koskela, Erkki & Puhakka, Mikko, 2007. "Stone-Geary preferences in overlapping generations economies under pure exchange: A note," Journal of Macroeconomics, Elsevier, vol. 29(4), pages 976-982, December.
    4. 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.
    5. de Janvry, Alain & Sadoulet, Elisabeth, 2010. "The Global Food Crisis and Guatemala: What Crisis and for Whom?," World Development, Elsevier, vol. 38(9), pages 1328-1339, September.
    6. Tiwari, Sailesh & Zaman, Hassan, 2010. "The impact of economic shocks on global undernourishment," Policy Research Working Paper Series 5215, The World Bank.
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    1. Ratnasiri, Shyama & Bandara, Jayatilleke S. & Korale-Gedara, Pradeepa, 2012. "Changing Incomes and Food Prices: The Implications for Rural and Urban Food Security in Sri Lanka," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 14, pages 1-16.
    2. Sisira Jayasuriya & Purushottam Mudbhary & Sumiter Broca, 2013. "Food Security in Asia: Recent Experiences, Issues and Challenges," Economic Papers, The Economic Society of Australia, vol. 32(3), pages 275-288, September.
    3. Harshana, P.V.S. & Ratnasiri, Shyama, 2023. "Asymmetric price transmission along the supply chain of perishable agricultural commodities: A nonlinear ARDL approach," The Journal of Economic Asymmetries, Elsevier, vol. 27(C).
    4. Nasima Akhter & Naomi Saville & Bhim Shrestha & Dharma S. Manandhar & David Osrin & Anthony Costello & Andrew Seal, 2018. "Change in cost and affordability of a typical and nutritionally adequate diet among socio-economic groups in rural Nepal after the 2008 food price crisis," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(3), pages 615-629, June.
    5. Jayasinghe, Maneka & Chai, Andreas & Ratnasiri, Shyama & Smith, Christine, 2017. "The power of the vegetable patch: How home-grown food helps large rural households achieve economies of scale & escape poverty," Food Policy, Elsevier, vol. 73(C), pages 62-74.

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