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Disaggregated Welfare Effects of Agricultural Price Policies in Urban Indonesia

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  • Helen H. Jensen
  • Justo Manrique

Abstract

Historically, the Government of Indonesia has intervened in food markets to control and stabilize food prices. Recently, policy has changed and input and food subsidies have been reduced. The resulting food price increases have had effects on consumers that differ among income groups. This paper develops a theoretically consistent methodology to measure changes in different income groups' welfare. Results show the importance of considering distributional effects of policy changes and of developing appropriate targeting of food policies.

Suggested Citation

  • Helen H. Jensen & Justo Manrique, 1996. "Disaggregated Welfare Effects of Agricultural Price Policies in Urban Indonesia," Center for Agricultural and Rural Development (CARD) Publications 96-wp173, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:96-wp173
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