The impact of food prices on poverty and food security

Recent food price fluctuations have sparked renewed interest in the impact of food prices on poverty and food security. This paper reviews the literature and analyzes why different authors often reach different conclusions regarding the welfare impacts of food price changes. We first show that syste...

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Bibliographic Details
Main Authors: Headey, Derek D., Martin, Will
Format: Journal Article
Language:Inglés
Published: Annual Reviews 2016
Subjects:
Online Access:https://hdl.handle.net/10568/148448
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author Headey, Derek D.
Martin, Will
author_browse Headey, Derek D.
Martin, Will
author_facet Headey, Derek D.
Martin, Will
author_sort Headey, Derek D.
collection Repository of Agricultural Research Outputs (CGSpace)
description Recent food price fluctuations have sparked renewed interest in the impact of food prices on poverty and food security. This paper reviews the literature and analyzes why different authors often reach different conclusions regarding the welfare impacts of food price changes. We first show that systematic measurement errors in household surveys may seriously affect estimates of the poor's dependence on food purchases at any given point in time. We then turn to the theoretical case for why the rural poor might ultimately benefit from higher food prices, with a particular focus on agricultural supply responses and resultant increases in demand for unskilled farm labor, which raise the wages of the poor. Consistent with these predictions, more sophisticated simulation models and new econometric evidence suggest that sustained increases in food prices have often benefited the poor and likely contributed to faster global poverty reduction from the mid-2000s onward. Conversely, the recent decline in agricultural prices could retard global poverty reduction.
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spelling CGSpace1484482024-10-25T07:59:25Z The impact of food prices on poverty and food security Headey, Derek D. Martin, Will surveys poverty alleviation households welfare food security food prices poverty prices Recent food price fluctuations have sparked renewed interest in the impact of food prices on poverty and food security. This paper reviews the literature and analyzes why different authors often reach different conclusions regarding the welfare impacts of food price changes. We first show that systematic measurement errors in household surveys may seriously affect estimates of the poor's dependence on food purchases at any given point in time. We then turn to the theoretical case for why the rural poor might ultimately benefit from higher food prices, with a particular focus on agricultural supply responses and resultant increases in demand for unskilled farm labor, which raise the wages of the poor. Consistent with these predictions, more sophisticated simulation models and new econometric evidence suggest that sustained increases in food prices have often benefited the poor and likely contributed to faster global poverty reduction from the mid-2000s onward. Conversely, the recent decline in agricultural prices could retard global poverty reduction. 2016-12-20 2024-06-21T09:24:43Z 2024-06-21T09:24:43Z Journal Article https://hdl.handle.net/10568/148448 en Annual Reviews Headey, Derek D.; and Martin, Will. 2016. The impact of food prices on poverty and food security. Annual Review of Resource Economics 8(2016): 329 - 351. https://doi.org/10.1146/annurev-resource-100815-095303
spellingShingle surveys
poverty alleviation
households
welfare
food security
food prices
poverty
prices
Headey, Derek D.
Martin, Will
The impact of food prices on poverty and food security
title The impact of food prices on poverty and food security
title_full The impact of food prices on poverty and food security
title_fullStr The impact of food prices on poverty and food security
title_full_unstemmed The impact of food prices on poverty and food security
title_short The impact of food prices on poverty and food security
title_sort impact of food prices on poverty and food security
topic surveys
poverty alleviation
households
welfare
food security
food prices
poverty
prices
url https://hdl.handle.net/10568/148448
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