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Food Calorie Intake under Grain Price Uncertainty: Evidence from Rural Nepal

  • Pan, Suwen
  • Fang, Cheng
  • Rejesus, Roderick M.

This study evaluates the effects of grain output price uncertainty on the farm income of rural households and, consequently, how this uncertainty influences caloric intake through changes in farm income. Using a rural household data set, augmented with output price uncertainty measures calculated from historical time-series data, we find that grain output price uncertainty tends to decrease crop production income of rural households. In addition, we find that higher crop income from production increases calorie intake of rural households. Taken together, these results suggests that output price uncertainty during the production process may tend to reduce caloric intake of rural Nepalese households since the price uncertainty negatively affects the crop income households need to buy calorie-rich staple foods.

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File URL: http://purl.umn.edu/6198
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6198.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6198
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  1. Sarris, Alexander, 2002. "The demand for commodity insurance by developing country agricultural producers - theory and an application to cocoa in Ghana," Policy Research Working Paper Series 2887, The World Bank.
  2. Philip J. Dawson & Richard Tiffin, 1998. "Estimating the Demand for Calories in India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 474-481.
  3. Singh, Inderjit & Squire, Lyn & Strauss, John, 1986. "A Survey of Agricultural Household Models: Recent Findings and Policy Implications," World Bank Economic Review, World Bank Group, vol. 1(1), pages 149-79, September.
  4. Timothy K.M. Beatty & Jeffrey T. LaFrance, 2005. "United States Demand for Food and Nutrition in the Twentieth Century," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1159-1166.
  5. Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023 Elsevier.
  6. Logan, Trevon D., 2009. "The Transformation of Hunger: The Demand for Calories Past and Present," The Journal of Economic History, Cambridge University Press, vol. 69(02), pages 388-408, June.
  7. Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June.
  8. Colin A. Carter & Funing Zhong, 1999. "Rural Wheat Consumption in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 582-592.
  9. Ravallion, Martin, 1990. "Income Effects on Undernutrition," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 489-515, April.
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