Welfare impacts of increasing food prices in Mexico: an application of unrestricted Engel curves and LA/EASI demand system
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.
|Date of creation:||2013|
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- Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low-income countries-super-1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
- Arthur Lewbel & Krishna Pendakur, 2006.
"Tricks With Hicks: The EASI Demand System,"
Boston College Working Papers in Economics
651, Boston College Department of Economics, revised 26 Nov 2008.
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- 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.
- 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.
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