The Response of Consumption to Income Shocks: Evidence from the Indian Trade Liberalization
Abstract
This paper uses the Indian tariff reforms of the early nineties to estimate how households responded to the negative income shocks caused by the tariff decreases. Households more hurt by the tariff reform decreased overall expenditure, but the response is not uniform across food items. In particular, households more hurt by the reform did not change their consumption of cereals, but decreased their consumption of all other food items. Although this coping mechanism helped maintain overall levels of calorie consumption, diet diversity and the associated benefits were sacrificed.Download Info
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Paper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103767.Length:
Date of creation: 2011
Date of revision:
Handle: RePEc:ags:aaea11:103767
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Keywords: Nutrition; Trade; Development; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; International Development; D7; D8; H2; O2;Find related papers by JEL classification:
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Petia Topalova, 2005.
"Trade Liberalization, Poverty, and Inequality: Evidence from Indian Districts,"
NBER Working Papers
11614, National Bureau of Economic Research, Inc.
- Petia Topalova, 2007. "Trade Liberalization, Poverty and Inequality: Evidence from Indian Districts," NBER Chapters, in: Globalization and Poverty, pages 291-336 National Bureau of Economic Research, Inc.
- Petia Topalova, 2005. "Trade Liberalization, Poverty And Inequality: Evidence From Indian Districts," Working Papers id:222, eSocialSciences.
- Petia Topalova & Eric Edmonds & Nina Pavcnik, 2007.
"Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform,"
Working Papers
id:999, eSocialSciences.
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- Edmonds, Eric V & Pavcnik, Nina & Topalova, Petia, 2008. "Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform," CEPR Discussion Papers 6772, C.E.P.R. Discussion Papers.
- Rana Hasan & Devashish Mitra & K.V. Ramaswamy, 2007.
"Trade Reforms, Labor Regulations, and Labor-Demand Elasticities: Empirical Evidence from India,"
The Review of Economics and Statistics,
MIT Press, vol. 89(3), pages 466-481, August.
- Rana Hasan & Devashish Mitra & K.V. Ramaswamy, 2003. "Trade Reforms, Labor Regulations and Labor-Demand Elasticities: Empirical Evidence from India," Economics Study Area Working Papers 59, East-West Center, Economics Study Area.
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