Why Is Food Cheaper in Rich (European) Countries?
AbstractRelative to non-food items, food tends to be cheaper in rich, as compared with poor European countries. This tendency cannot be explained in terms of cost developments or foreign-trade considerations. A positive explanation proposed focuses on demand-income-supply interaction. An analysis of a cross-country price-augmented modification of Engel's Law, econometrically specified, indicates that the relative price of food is related positively to the supply of food items and negatively to that of non-food items. This finding is consistent with ¿agricultural price scissors' and also casts a different light on the nature of economic development and structural change.
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Bibliographic InfoPaper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Research Reports with number 322.
Length: 31 pages including 2 Tables and 6 Figures
Date of creation: Oct 2005
Date of revision:
Publication status: Published as wiiw Research Report
Other versions of this item:
- Leon Podkaminer, 2004. "Why is food cheaper in rich (European) countries?," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 57(230), pages 297-327.
- Leon Podkaminer, 2004. "Why is food cheaper in rich (European) countries?," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 57(230), pages 297-327.
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
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