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Food Subsidy Programs: A Case Study Of Price Reform In Morocco

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  • Laraki, Karim

Abstract

The following two papers present an analysis of the costs and benefits of food subsidies in Morocco. The. study investigates how the financial costs of food subsidies can be decreased without adversely affecting the standard of living and nutritional status of the poor. The first paper describes the organization of the food-subsidy program in Morocco ·and presents descriptive statistics on food-consumption patterns there. The paper serves as a background document to the second report which discusses the methodological iss~es involved in estimating the welfare and nutritional effects of price and tax reforms in developing countries. For the second paper, I apply a model that Deaton (1988) developed to estimate price elasticities from cross-section data (the only reliable and detailed data available in most developing countries). Using the 1984-85 household consumption survey from Morocco, I quantify .the effects of modifying the existing food subsidy program. I use both real income and nutritional effects to evaluate the Moroccan program and by extension similar ones elsewhere.

Suggested Citation

  • Laraki, Karim, 1988. "Food Subsidy Programs: A Case Study Of Price Reform In Morocco," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270204, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea88:270204
    DOI: 10.22004/ag.econ.270204
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    References listed on IDEAS

    as
    1. Mellor, John W, 1978. "Food Price Policy and Income Distribution in Low-Income Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 27(1), pages 1-26, October.
    2. Sahn, David E, 1988. "The Effect of Price and Income Changes on Food-Energy Intake in Sri Lanka," Economic Development and Cultural Change, University of Chicago Press, vol. 36(2), pages 315-340, January.
    3. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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