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Do price increases for staple foods help or hurt the rural poor?

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  • Ravallion, Martin

Abstract

The effect on the poor of changes in the price of staple foods is a central issue in debates on development policy. In the short run the rural rich are likely to gain, and the rural poor to lose, from an increase in the relative price of food staples in a food producing economy. However, in the long run the welfare of a typical poor household will be neutral to such price increases (after allowing for wage adjustments), and the poorest households will benefit somewhat.

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File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1989/03/01/000009265_3960927174116/Rendered/PDF/multi0page.pdf
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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 167.

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Date of creation: 31 Mar 1989
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Handle: RePEc:wbk:wbrwps:167

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Related research

Keywords: Economic Theory&Research; Environmental Economics&Policies; Poverty Lines; Markets and Market Access; Access to Markets;

References

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  1. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-19, September.
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Cited by:
  1. Vergez, Antonin, 2007. "Agricultural Price Seasonality and Market Failure: Examining the Net Seller Household and the Net Benefit Ratio Definition," 106th Seminar, October 25-27, 2007, Montpellier, France 7911, European Association of Agricultural Economists.
  2. Anne Maasland, 1992. "Consecuencias Distributivas de las Políticas de Ajuste: Una Revisión de Metodologías," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 29(86), pages 141-162.
  3. José Cuesta & Suzanne Duryea & Fidel Jaramillo & Marcos Robles, 2010. "Distributive impacts of the food price crisis in the Andean region," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(7), pages 846-865.
  4. Aksoy , M. Ataman & Isik-Dikmelik, Aylin, 2008. "Are low food prices pro-poor ? net food buyers and sellers in low-income countries," Policy Research Working Paper Series 4642, The World Bank.
  5. Timmer, C. Peter, 2000. "The macro dimensions of food security: economic growth, equitable distribution, and food price stability," Food Policy, Elsevier, vol. 25(3), pages 283-295, June.
  6. Maasland, Anne, 1990. "Methods for measuring the effect of adjustment policies on income distribution," Policy Research Working Paper Series 474, The World Bank.

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