IDEAS home Printed from https://ideas.repec.org/p/ags/aaea11/103767.html
   My bibliography  Save this paper

The Response of Consumption to Income Shocks: Evidence from the Indian Trade Liberalization

Author

Listed:
  • Tandon, Sharad
  • Landes, Maurice R.

Abstract

This paper uses the Indian tariff reforms of the early nineties to estimate how households responded to the negative income shocks caused by the tariff decreases. Households more hurt by the tariff reform decreased overall expenditure, but the response is not uniform across food items. In particular, households more hurt by the reform did not change their consumption of cereals, but decreased their consumption of all other food items. Although this coping mechanism helped maintain overall levels of calorie consumption, diet diversity and the associated benefits were sacrificed.

Suggested Citation

  • Tandon, Sharad & Landes, Maurice R., 2011. "The Response of Consumption to Income Shocks: Evidence from the Indian Trade Liberalization," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103767, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea11:103767
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/103767
    Download Restriction: no

    References listed on IDEAS

    as
    1. Eric V. Edmonds & Nina Pavcnik & Petia Topalova, 2010. "Trade Adjustment and Human Capital Investments: Evidence from Indian Tariff Reform," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 42-75, October.
    2. Rana Hasan & Devashish Mitra & K.V. Ramaswamy, 2007. "Trade Reforms, Labor Regulations, and Labor-Demand Elasticities: Empirical Evidence from India," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 466-481, August.
    3. Petia Topalova, 2007. "Trade Liberalization, Poverty and Inequality: Evidence from Indian Districts," NBER Chapters,in: Globalization and Poverty, pages 291-336 National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Nutrition; Trade; Development; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; International Development; D7; D8; H2; O2;

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea11:103767. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.