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Trade, Tastes and Nutrition in India

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  • Atkin, David

Abstract

This paper introduces habit formation into an otherwise standard model of international trade. Household tastes evolve over time to favor foods consumed as a child. The opening of trade causes preferred goods to rise in price, as these were relatively inexpensive in autarky. Neglecting the correlation between tastes and agro-climatic endowments overstates the short-run nutritional gains from agricultural trade liberalization and masks potential caloric losses for laborers. I examine the predictions of this model of trade with habit formation using household survey data from India, both by looking across Indian regions and by examining the consumption patterns of inter-state migrants.

Suggested Citation

  • Atkin, David, 2010. "Trade, Tastes and Nutrition in India," Center Discussion Papers 60710, Yale University, Economic Growth Center.
    • Handle: RePEc:ags:yaleeg:60710
    DOI: 10.22004/ag.econ.60710
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    References listed on IDEAS

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    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Food Consumption/Nutrition/Food Safety; International Development; International Relations/Trade;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F10 - International Economics - - Trade - - - General

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