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Welfare impacts of increasing food prices in Mexico: an application of unrestricted Engel curves and LA/EASI demand system

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  • Magana-Lemus, David
  • Isdorj, Ariun
  • Rosson, C. Parr, III
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    Abstract

    This paper examines the impacts of rising food prices on welfare of Mexican households by using LA/EASI demand system. Estimated welfare effects from food price increases differ considerably for two reference households. Lower-income reference household’s welfare loss, from a tortilla price increase, is two-fold that on higher-income reference household. This fact may have implications on food poverty.

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    File URL: http://purl.umn.edu/143057
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    Bibliographic Info

    Paper provided by Southern Agricultural Economics Association in its series 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida with number 143057.

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    Date of creation: 2013
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    Handle: RePEc:ags:saea13:143057

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    Keywords: Food Prices; Welfare Analysis; EASI Demand System; Mexico.; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Security and Poverty;

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    1. Arthur Lewbel & Krishna Pendakur, 2006. "Tricks With Hicks: The EASI Demand System," Boston College Working Papers in Economics 651, Boston College Department of Economics, revised 26 Nov 2008.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
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