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Food Demand, Food Prices and Welfare Analysis utilizing EASI model

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  • Magaña-Lemus, David
  • Ishdorj, Ariun
  • Rosson, C. Parr III

Abstract

The impacts of rising food prices on poverty and welfare of Mexican households are examined by using a linearized version of the Exact Affine Stone Index (EASI) demand system. The distribution of monetary measures of welfare effects from food price changes is estimated as well as equivalence scales that allow inter-household comparison of welfare changes. After accounting for substitution effects, poverty related impacts were estimated. Findings indicate that the increase in prices of five food groups from 2006 to 2010 has led to an increment of 1.8 percentage points in the proportion of households with income below the food poverty line.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150521.

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Date of creation: 2013
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Handle: RePEc:ags:aaea13:150521

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Keywords: Food Prices; Welfare Analysis; EASI Demand System; Mexico; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Public Economics; Research Methods/ Statistical Methods; D04; D10; D12; D60;

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  1. Héctor J. Villarreal & Juan Carlos Chávez & Ricardo Cantú & Horacio González, 2008. "Impacto del Incremento en los Precios de los Alimentos en la Pobreza en México," Working Papers 20081, Centro de Estudios de las Finanzas Públicas, H. Cámara de Diputados, revised Jul 2008.
  2. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low-income countries-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
  3. Arthur Lewbel & Krishna Pendakur, 2009. "Tricks with Hicks: The EASI Demand System," American Economic Review, American Economic Association, vol. 99(3), pages 827-63, June.
  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. Wood, Benjamin D.K. & Nelson, Carl H. & Nogueira, Lia, 2012. "Poverty effects of food price escalation: The importance of substitution effects in Mexican households," Food Policy, Elsevier, vol. 37(1), pages 77-85.
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