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Food Price Surges and Poverty in Urban Colombia: New Evidence from Household Survey Data

Author Info

  • Laura Kiku Rodriguez-Takeuchi

    (School of Social Sciences, University of Manchester, UK)

  • Katsushi S. Imai

    (Economics, School of Social Sciences, University of Manchester (UK) and RIEB, Kobe University (Japan))

Abstract

The present study simulates the impacts of price surges in 2006-2008 on household poverty in the main Colombian cities. It is found that the price surges increased both extreme and moderate poverty in urban areas in short and medium terms. However, the magnitude of poverty rise is not homogeneous geographically or by household types – e.g., the poorest or less educated households were more badly affected than the wealthier or educated households. We suggest 'demographic targeting' or 'geographical targeting' as a policy option that selects and supports poor households by demographic characteristics or by geographical areas according to the degree of vulnerability. Protecting those households from food price shocks would be still important now given that rising and volatile food prices have continued due to erratic climate patterns and demand and supply conditions along with economic and financial crisis.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2011-33.pdf
File Function: First version, 2011
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Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2011-33.

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Length: 45 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:kob:dpaper:dp2011-33
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Keywords: Food price surges; Urban poverty; Colombia;

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Find related papers by JEL classification:
  • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
  • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
  • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
  • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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  1. Tomoki Fujii, 2011. "Impact of food inflation on poverty in the Philippines," Working Papers 14-2011, Singapore Management University, School of Economics.
  2. Vincent Leyaro & Oliver Morrissey & Trudy Owens, 2010. "Food prices, tax reforms and consumer Welfare in Tanzania 1991–2007," International Tax and Public Finance, Springer, vol. 17(4), pages 430-450, August.
  3. Coulombe, Harold & Wodon, Quentin, 2008. "Assessing the geographic impact of higher food prices in Guinea," Policy Research Working Paper Series 4743, The World Bank.
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  6. Yonas Alem & Måns Söderbom, 2010. "Household-Level Consumption in Urban Ethiopia: The Impact of Food Price Inflation and Idiosyncratic Shocks," CSAE Working Paper Series 2010-24, Centre for the Study of African Economies, University of Oxford.
  7. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
  8. Dessus, Sebastien & Herrera, Santiago & de Hoyos, Rafael, 2008. "The impact of food inflation on urban poverty and its monetary cost : some back-of-the-envelope calculations," Policy Research Working Paper Series 4666, The World Bank.
  9. 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.
  10. Coleman, Simeon, 2012. "Where Does the Axe Fall? Inflation Dynamics and Poverty Rates: Regional and Sectoral Evidence for Ghana," World Development, Elsevier, vol. 40(12), pages 2454-2467.
  11. Horton, Sue & Kerr, Tom & Diakosavvas, Dimitris, 1988. "The social costs of higher food prices: Some cross-country evidence," World Development, Elsevier, vol. 16(7), pages 847-856, July.
  12. Shaohua Chen & Martin Ravallion, 2004. "Welfare Impacts of China's Accession to the World Trade Organization," World Bank Economic Review, World Bank Group, vol. 18(1), pages 29-57.
  13. Ulimwengu, John M. & Workneh, Sindu & Paulos, Zelekawork, 2009. "Impact of soaring food price in Ethiopia: Does location matter?," IFPRI discussion papers 846, International Food Policy Research Institute (IFPRI).
  14. Ivanic, Maros & Martin, Will & Zaman, Hassan, 2012. "Estimating the Short-Run Poverty Impacts of the 2010–11 Surge in Food Prices," World Development, Elsevier, vol. 40(11), pages 2302-2317.
  15. 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.
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