Food Prices, Government Subsidies and Fiscal Balances in South Mediterranean Countries
Soaring food and energy prices sparked the revolts in Northern African countries at the end of 2010. Despite government subsidies, consumer price inflation rose, which reduced consumers’ purchasing power. This article empirically investigates the impact of world food prices on inflation and government subsidies for Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the occupied Palestinian territories and Tunisia during the ten-year period 2002-2011. Our findings show an asymmetry in the response of consumer price inflation to world food price shocks, in that soaring world food prices made inflation rise fast while nominal rigidities prevented inflation from falling. Moreover, this paper shows that government balances deteriorated up to 2% of GDP in 2008 and 2011 due to the incremental government food subsidies while they hardly improved in value terms when world food prices sharply fell in 2009.
(This abstract was borrowed from another version of this item.)
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 31 (2013)
Issue (Month): 3 (05)
|Contact details of provider:|| Postal: |
Phone: +44 (0)20 7922 0300
Fax: +44 (0)20 7922 0399
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0950-6764
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0950-6764|
References listed on IDEAS
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.:
- Albers, Ronald & Peeters, Marga, 2011.
"Food and energy prices, government subsidies and fiscal balances in south Mediterranean countries,"
28788, University Library of Munich, Germany.
- Ronald Albers & Marga Peeters, 2011. "Food and Energy Prices, Government Subsidies and Fiscal Balances in South Mediterranean Countries," European Economy - Economic Papers 437, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
- Peeters, Marga & Strahilov, Kiril, 2008. "Macro-economic policy reactions to soaring food prices in Mediterranean countries, Russia, the CIS and the GCC," MPRA Paper 23860, University Library of Munich, Germany.
- Alex Segura-Ubiergo & Taline Koranchelian & Carlos Mulas-Granados, 2008. "Reforming Government Subsidies in the New Member States of the European Union," IMF Working Papers 08/165, International Monetary Fund.
- World Bank, 2009. "Global Economic Prospects 2009 : Commodities at the Crossroads," World Bank Publications, The World Bank, number 2581.
- Yitzhaki, Shlomo, 1990. "On the Effect of Subsidies to Basic Food Commodities in Egypt," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 772-92, October.
- Raghbendra Jha & Raghav Gaiha & Manoj K. Pandey & Nidhi Kaicker, 2011.
"Food Subsidy, Income Transfer and the Poor: A Comparative Analysis of the Public Distribution System in India's States,"
ASARC Working Papers
2011-16, The Australian National University, Australia South Asia Research Centre.
- Jha, Raghbendra & Gaiha, Raghav & Pandey, Manoj K. & Kaicker, Nidhi, 2013. "Food subsidy, income transfer and the poor: A comparative analysis of the public distribution system in India's states," Journal of Policy Modeling, Elsevier, vol. 35(6), pages 887-908.
- Jongwanich, Juthathip & Park, Donghyun, 2009. "Inflation in developing Asia," Journal of Asian Economics, Elsevier, vol. 20(5), pages 507-518, September.
- Juthathip Jongwanich & Donghyun Park, 2011. "Inflation in developing Asia: pass‐through from global food and oil price shocks," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 25(1), pages 79-92, 05.
When requesting a correction, please mention this item's handle: RePEc:bla:devpol:v:31:y:2013:i:3:p:273-290. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.