Rising food prices and household welfare : evidence from Brazil in 2008
AbstractFood price inflation in Brazil in the twelve months to June 2008 was 18 percent, while overall inflation was seven percent. Using spatially disaggregated monthly data on consumer prices and two different household surveys, we estimate the welfare consequences of these food price increases, and their distribution across households. Because Brazil is a large food producer, with a predominantly wage-earning agricultural labor force, our estimates include general equilibrium effects on market and transfer incomes, as well as the standard estimates of changes in consumer surplus. While the expenditure (or consumer surplus) effects were large, negative and markedly regressive everywhere, the market income effect was positive and progressive, particularly in rural areas. Because of this effect on the rural poor, and of the partial protection afforded by increases in two large social assistance benefits, the overall impact of higher food prices in Brazil was U-shaped, with middle-income groups suffering larger proportional losses than the very poor. Nevertheless, since Brazil is 80 percent urban, higher food prices still led to a greater incidence and depth of poverty at the national level.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5652.
Date of creation: 01 May 2011
Date of revision:
Rural Poverty Reduction; Markets and Market Access; Food&Beverage Industry; Regional Economic Development;
Other versions of this item:
- Francisco H. G. Ferreira & Anna Fruttero & Phillippe G. Leite & Leonardo R. Lucchetti, 2013. "Rising Food Prices and Household Welfare: Evidence from Brazil in 2008," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 151-176, 02.
- Ferreira, Francisco H. G. & Fruttero, Anna & Leite, Phillippe & Lucchetti, Leonardo, 2011. "Rising Food Prices and Household Welfare: Evidence from Brazil in 2008," IZA Discussion Papers 5713, Institute for the Study of Labor (IZA).
- Francisco H. G. Ferreira & Anna Fruttero & Phillippe Leite & Leonardo Lucchetti, 2011. "Rising food prices and household welfare: Evidence from Brazil in 2008," Working Papers 200, ECINEQ, Society for the Study of Economic Inequality.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-AGR-2011-05-14 (Agricultural Economics)
- NEP-ALL-2011-05-14 (All new papers)
- NEP-LAM-2011-05-14 (Central & South America)
- NEP-LTV-2011-05-14 (Unemployment, Inequality & Poverty)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jed Friedman & James Levinsohn, 2002.
"The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology,"
World Bank Economic Review,
World Bank Group, vol. 16(3), pages 397-423, December.
- Jed Friedman & James Levinsohn, 2001. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: "A Rapid Response Methodology"," William Davidson Institute Working Papers Series 387, William Davidson Institute at the University of Michigan.
- Jed Friedman & James Levinsohn, 2001. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A "Rapid Response" Methodology," NBER Working Papers 8564, National Bureau of Economic Research, Inc.
- Jed Friedman & James Levinsohn, 2001. "The Distributional Impacts of Indonesia's Financial Crisis on Household Welfare: A 'Rapid Response' Methodology," Working Papers 482, Research Seminar in International Economics, University of Michigan.
- Deaton, Angus, 1990.
"Price elasticities from survey data : Extensions and Indonesian results,"
Journal of Econometrics,
Elsevier, vol. 44(3), pages 281-309, June.
- Deaton, A., 1988. "Price Elasticities From Survey Data: Extensions And Indonesian Results," Papers 138, Princeton, Woodrow Wilson School - Development Studies.
- Deaton, A., 1990. "Price Elasticities From Surveys Data: Extensions And Indonesian Results," Papers 69, World Bank - Living Standards Measurement.
- Anton Korinek & Johan Mistiaen & Martin Ravallion, 2006.
"Survey nonresponse and the distribution of income,"
Journal of Economic Inequality,
Springer, vol. 4(1), pages 33-55, April.
- Ferreira, Francisco H. G. & Leite, Phillippe G. & Ravallion, Martin, 2007.
"Poverty reduction without economic growth ? explaining Brazil's poverty dynamics, 1985-2004,"
Policy Research Working Paper Series
4431, The World Bank.
- Ferreira, Francisco H.G. & Leite, Phillippe G. & Ravallion, Martin, 2010. "Poverty reduction without economic growth?: Explaining Brazil's poverty dynamics, 1985-2004," Journal of Development Economics, Elsevier, vol. 93(1), pages 20-36, September.
- Ravallion, Martin & van de Walle, Dominique, 1991. "The impact on poverty of food pricing reforms: A welfare analysis for Indonesia," Journal of Policy Modeling, Elsevier, vol. 13(2), pages 281-299.
- 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.
- Fabio Veras Soares & Sergei Suarez Dillon Soares & Marcelo Medeiros & Rafael Guerreiro Osório, 2006. "Cash Transfer Programmes in Brazil: Impacts on Inequality and Poverty," Working Papers 21, International Policy Centre for Inclusive Growth.
- Sakai, Yoko & Estudillo, Jonna P. & Fuwa, Nobuhiko & Higuchi, Yuki & Sawada, Yasuyuki, 2012. "Do Natural Disasters Affect the Poor Disproportionately? The Case of Typhoon Milenyo in the Rural Philippines," PRIMCED Discussion Paper Series 31, Institute of Economic Research, Hitotsubashi University.
- Alderman, Harold, 2014. "Can transfer programs be made more nutrition sensitive?:," IFPRI discussion papers 1342, International Food Policy Research Institute (IFPRI).
- Lederman, Daniel & Porto, Guido, 2014. "The price is not always right : on the impacts of (commodity) prices on households (and countries)," Policy Research Working Paper Series 6858, The World Bank.
- Khandker, Shahidur R. & Koolwal, Gayatri B. & Haughtonm Jonathan & Jitsuchon, Somchai, 2012. "Household coping and response to government stimulus in an economic crisis : evidence from Thailand," Policy Research Working Paper Series 6016, The World Bank.
- repec:fpr:export:1342 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.