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Analyzing Nutritional Impacts of Price and Income Related Shocks in Malawi: Simulating Household Entitlements to Food

Author

Listed:
  • Kenneth Harttgen

    (ETH Zurich)

  • Stephan Klasen

    (Georg-August-University Göttingen)

  • Ramona Rischke

    (Georg-August-University Göttingen)

Abstract

The 2007/2008 food price crisis and the following global economic recession has (temporarily) increased the number of people to suffer from hunger. While the impacts can be measured with precision only ex post, for policy makers it is critical to get a sense of likely impacts ex ante in order to plan approaches to mitigate these impacts. In this paper we adopt a very simple micro-based simulation approach to analyze how changes in prices of specific food groups, such as maize prices or prices for staple foods, as well as how negative short-term household level income shocks affect the entitlements to calorie consumption of individuals and how these changes affect overall food poverty. We illustrate our approach using household survey data from Malawi. We find that food poverty is of serious concern with large within-country variations. We find that price shocks for staple foods have a very large impact on food security with particularly strong effects on poor net food buyers in rural and urban areas. This paper demonstrates that it is possible to estimate food security impacts of price and income shocks ex ante in a relatively straightforward fashion that can be done relatively quickly and that is suitable for cross-country assessments of the likely impacts of shocks on food security and the design of appropriate response measures.

Suggested Citation

  • Kenneth Harttgen & Stephan Klasen & Ramona Rischke, 2015. "Analyzing Nutritional Impacts of Price and Income Related Shocks in Malawi: Simulating Household Entitlements to Food," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 166, Courant Research Centre PEG.
  • Handle: RePEc:got:gotcrc:166
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Garciá-Germán, Sol & Romeo, Alessandro & Magrini, Emiliano & Balilé, Jean, 2016. "The impact of food price shocks on weight loss: Evidence from the adult population of Tanzania," Department of Agricultural and Rural Development (DARE) Discussion Papers 260778, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Abiona, Olukorede & Koppensteiner, Martin Foureaux, 2018. "Financial Inclusion, Shocks and Poverty: Evidence from the Expansion of Mobile Money in Tanzania," IZA Discussion Papers 11928, Institute of Labor Economics (IZA).
    3. Antelo, Manel & Magdalena, Pilar & Reboredo, Juan C., 2017. "Economic crisis and the unemployment effect on household food expenditure: The case of Spain," Food Policy, Elsevier, vol. 69(C), pages 11-24.
    4. repec:eee:wdevel:v:113:y:2019:i:c:p:26-43 is not listed on IDEAS
    5. repec:eee:jfpoli:v:85:y:2019:i:c:p:40-54 is not listed on IDEAS
    6. Masters, William A. & Bai, Yan & Herforth, Anna & Sarpong, Daniel & Mishili, Fulgence & Kinabo, Joyce & Coates, Jennifer C., 2017. "Measuring Access to Nutritious Diets in Africa: Novel Price Indexes for Diet Diversity and the Cost of Nutrient Adequacy," 2018 Allied Social Sciences Association (ASSA) Annual Meeting, January 5-7, 2018, Philadelphia, Pennsylvania 264946, Agricultural and Applied Economics Association.
    7. repec:spr:ssefpa:v:10:y:2018:i:6:d:10.1007_s12571-018-0857-5 is not listed on IDEAS
    8. Conceição, Pedro & Levine, Sebastian & Lipton, Michael & Warren-Rodríguez, Alex, 2016. "Toward a food secure future: Ensuring food security for sustainable human development in Sub-Saharan Africa," Food Policy, Elsevier, vol. 60(C), pages 1-9.

    More about this item

    Keywords

    Price shock; Income shock; Simulation approach; Food security; Entitlement approach;

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • D6 - Microeconomics - - Welfare Economics
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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