Trade, tastes and Nutrition in India
AbstractThis paper introduces habit formation into an otherwise standard model of international trade. Household tastes evolve over time to favor foods consumed as a child. The opening of trade causes preferred goods to rise in price, as these were relatively inexpensive in autarky. Neglecting the correlation between tastes and agro-climatic endowments overstates the short-run nutritional gains from agricultural trade liberalization and masks potential caloric losses for laborers. I examine the predictions of this model of trade with habit formation using household survey data from India, both by looking across Indian regions and by examining the consumption patterns of inter-state migrants.
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Bibliographic InfoPaper provided by Economic Growth Center, Yale University in its series Working Papers with number 986.
Length: 83 pages
Date of creation: Apr 2010
Date of revision:
international trade; habit formation; India; Tastes; nutrition;
Other versions of this item:
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
- F10 - International Economics - - Trade - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-04-24 (Agricultural Economics)
- NEP-ALL-2010-04-24 (All new papers)
- NEP-CWA-2010-04-24 (Central & Western Asia)
- NEP-DEV-2010-04-24 (Development)
- NEP-INT-2010-04-24 (International Trade)
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