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How Consumer Price Subsidies affect Nutrition

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  • Kaushal, Neeraj
  • Muchomba, Felix M.

Abstract

We study the effect of an exogenous increase in food grain subsidy from a program targeting the poor in rural India and find that the increase in income resulting from the subsidy increased consumption of the subsidized grains and certain more expensive sources of nutrition, lowered consumption of coarse grains, the cheaper, yet, unsubsidized staple food, and increased expenditures on nonfood items but had no effect on nutrition in poor households. Estimates of the price effect of the subsidy on nutrition are also negligible; the price subsidy increased consumption of wheat and rice and lowered consumption of coarse grains.

Suggested Citation

  • Kaushal, Neeraj & Muchomba, Felix M., 2015. "How Consumer Price Subsidies affect Nutrition," World Development, Elsevier, vol. 74(C), pages 25-42.
  • Handle: RePEc:eee:wdevel:v:74:y:2015:i:c:p:25-42
    DOI: 10.1016/j.worlddev.2015.04.006
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    5. Phadera,Lokendra & Sharma,Dhiraj & Wai-Poi,Matthew Grant, 2020. "Iraq's Universal Public Distribution System : Utilization and Impacts During Displacement," Policy Research Working Paper Series 9155, The World Bank.
    6. Rahman, Andaleeb, 2016. "Universal food security program and nutritional intake: Evidence from the hunger prone KBK districts in Odisha," Food Policy, Elsevier, vol. 63(C), pages 73-86.
    7. Kym Anderson, 2016. "Agricultural Trade, Policy Reforms, and Global Food Security," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-1-137-46925-0.
    8. Anjana Thampi, 2016. "The Impact of the Public Distribution System in India," Indian Journal of Human Development, , vol. 10(3), pages 353-365, December.
    9. Felix M. Muchomba & Neeraj Kaushal, 2016. "Effect of Food Subsidies on Micronutrient Consumption," Indian Journal of Human Development, , vol. 10(3), pages 317-335, December.

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