How Do Governments Respond to Food Price Spikes? Lessons from the Past
AbstractFood prices in international markets spiked upwards in 2008, doubling or more in a matter of months. Evidence is still being compiled on policy responses over the following two years, but new time series estimates of government intervention for the previous five decades allow insights into past policy responses to price fluctuations and spikes. This paper reviews the distortionary impacts of policies used by governments attempting to stabilize their domestic food markets. It then focuses on policy responses in the mid-1970s, as reflected in various annual indicators of distortions to producer and consumer incentives, before drawing out some policy lessons.
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Bibliographic InfoPaper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2010-15.
Length: 37 pages
Date of creation: May 2010
Date of revision:
Commodity price stabilization policies; Domestic market insulation; Distorted incentives; Agricultural and trade policies; Trade restrictiveness indexes;
Other versions of this item:
- Kym Anderson & Signe Nelgen, 2010. "How Do Governments Respond To Food Price Spikes? Lessons From The Past," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 265-285.
- Anderson, Kym & Nelgen, Signe, 2010. "How do governments respond to food price spikes ? lessons from the past," Policy Research Working Paper Series 5403, The World Bank.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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- Colin A. Carter & Gordon C. Rausser & Aaron Smith, 2011. "Commodity Booms and Busts," Annual Review of Resource Economics, Annual Reviews, vol. 3(1), pages 87-118, October.
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