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Do price increases for staple foods help or hurt the rural poor?

  • Ravallion, Martin

The effect on the poor of changes in the price of staple foods is a central issue in debates on development policy. In the short run the rural rich are likely to gain, and the rural poor to lose, from an increase in the relative price of food staples in a food producing economy. However, in the long run the welfare of a typical poor household will be neutral to such price increases (after allowing for wage adjustments), and the poorest households will benefit somewhat.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 167.

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Date of creation: 31 Mar 1989
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Handle: RePEc:wbk:wbrwps:167
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  1. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-19, September.
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