Do Consumer Price Subsidies Really Improve Nutrition?
Many developing countries use food-price subsidies or price controls to improve the nutrition of the poor. However, subsidizing goods on which households spend a high proportion of their budget can create large wealth effects. Consumers may then substitute towards foods with higher non-nutritional attributes (e.g., taste), but lower nutritional content per unit of currency, weakening or perhaps even reversing the intended impact of the subsidy. We analyze data from a randomized program of large price subsidies for poor households in two provinces of China and find no evidence that the subsidies improved nutrition. In fact, it may have had a negative impact for some households.
|Date of creation:||Jun 2010|
|Publication status:||published as Jensen, R., Miller, N. 2011. "Do Consumer Price Subsidies Really Improve Nutrition?". Review of Economics and Statistics, 93(4): 1205-1223.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tarozzi, Alessandro, 2005. "The Indian Public Distribution System as provider of food security: Evidence from child nutrition in Andhra Pradesh," European Economic Review, Elsevier, vol. 49(5), pages 1305-1330, July.
- Strauss, John, 1984. "Joint determination of food consumption and production in rural Sierra Leone : Estimates of a household-firm model," Journal of Development Economics, Elsevier, vol. 14(1), pages 77-103.
- Thomas, Duncan & Strauss, John, 1997.
"Health and wages: Evidence on men and women in urban Brazil,"
Journal of Econometrics,
Elsevier, vol. 77(1), pages 159-185, March.
- Thomas, D. & Strauss, J., 1997. "Health and Wages: Evidence on Men and Women in Urban Brazil," Papers 97-05, RAND - Reprint Series.
- Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June.
- Pitt, Mark M, 1983. "Food Preferences and Nutrition in Rural Bangladesh," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 105-114, February.
- David Stifel & Harold Alderman, 2006.
"The "Glass of Milk" Subsidy Program and Malnutrition in Peru,"
World Bank Economic Review,
World Bank Group, vol. 20(3), pages 421-448.
- Stifel, David*Alderman, Harold, 2003. "The"Glass of Milk"subsidy program and malnutrition in Peru," Policy Research Working Paper Series 3089, The World Bank.
- Ravallion, Martin, 2007. "Geographic inequity in a decentralized anti-poverty program : a case study of China," Policy Research Working Paper Series 4303, The World Bank.
- Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:16102. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.