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Welfare impacts of increasing food prices in Mexico: an application of unrestricted Engel curves and LA/EASI demand system

Author

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  • Magana-Lemus, David
  • Isdorj, Ariun
  • Rosson, C. Parr, III

Abstract

This paper examines the impacts of rising food prices on welfare of Mexican households by using LA/EASI demand system. Estimated welfare effects from food price increases differ considerably for two reference households. Lower-income reference household’s welfare loss, from a tortilla price increase, is two-fold that on higher-income reference household. This fact may have implications on food poverty.

Suggested Citation

  • Magana-Lemus, David & Isdorj, Ariun & Rosson, C. Parr, III, 2013. "Welfare impacts of increasing food prices in Mexico: an application of unrestricted Engel curves and LA/EASI demand system," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143057, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea13:143057
    DOI: 10.22004/ag.econ.143057
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    File URL: https://ageconsearch.umn.edu/record/143057/files/Food%20Demand%20and%20Welfare%20for%20SAEA%202013.pdf
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    References listed on IDEAS

    as
    1. Wood, Benjamin D.K. & Nelson, Carl H. & Nogueira, Lia, 2012. "Poverty effects of food price escalation: The importance of substitution effects in Mexican households," Food Policy, Elsevier, vol. 37(1), pages 77-85.
    2. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
    3. Arthur Lewbel & Krishna Pendakur, 2009. "Tricks with Hicks: The EASI Demand System," American Economic Review, American Economic Association, vol. 99(3), pages 827-863, June.
    4. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
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    Cited by:

    1. Rolando, Dominique J., 2018. "Would a discount on fruits and vegetables provide more relative welfare to the poor? Evaluating the impact of policy mechanisms," 2018 Annual Meeting, August 5-7, Washington, D.C. 273848, Agricultural and Applied Economics Association.

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    Keywords

    Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Security and Poverty;
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