Food prices and poverty reduction in the long run
Standard microeconomic methods consistently suggest that, in the short run, higher food prices increase poverty in developing countries. In contrast, macroeconomic models that allow for an agricultural supply response and consequent wage adjustments suggest that the poor ultimately benefit from high...
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| Format: | Artículo preliminar |
| Language: | Inglés |
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International Food Policy Research Institute
2014
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| Online Access: | https://hdl.handle.net/10568/149403 |
| _version_ | 1855514540103434240 |
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| author | Headey, Derek D. |
| author_browse | Headey, Derek D. |
| author_facet | Headey, Derek D. |
| author_sort | Headey, Derek D. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Standard microeconomic methods consistently suggest that, in the short run, higher food prices increase poverty in developing countries. In contrast, macroeconomic models that allow for an agricultural supply response and consequent wage adjustments suggest that the poor ultimately benefit from higher food prices. In this paper we use international data to systematically test the relationship between changes in domestic food prices and changes in poverty. We find robust evidence that in the long run (one to five years) higher food prices reduce poverty and inequality. The magnitudes of these effects vary across specifications and are not precisely estimated, but they are large enough to suggest that the recent increase in global food prices has significantly accelerated the rate of global poverty reduction. |
| format | Artículo preliminar |
| id | CGSpace149403 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1494032025-11-06T05:09:26Z Food prices and poverty reduction in the long run Headey, Derek D. income income generation poverty alleviation food prices poverty equality Standard microeconomic methods consistently suggest that, in the short run, higher food prices increase poverty in developing countries. In contrast, macroeconomic models that allow for an agricultural supply response and consequent wage adjustments suggest that the poor ultimately benefit from higher food prices. In this paper we use international data to systematically test the relationship between changes in domestic food prices and changes in poverty. We find robust evidence that in the long run (one to five years) higher food prices reduce poverty and inequality. The magnitudes of these effects vary across specifications and are not precisely estimated, but they are large enough to suggest that the recent increase in global food prices has significantly accelerated the rate of global poverty reduction. 2014 2024-08-01T02:49:20Z 2024-08-01T02:49:20Z Working Paper https://hdl.handle.net/10568/149403 en https://hdl.handle.net/10568/152621 https://doi.org/10.2499/9780896291782RM165 https://hdl.handle.net/10568/154137 https://hdl.handle.net/10568/153568 Open Access application/pdf International Food Policy Research Institute Headey, Derek D. 2014. Food prices and poverty reduction in the long run. IFPRI Discussion Paper 1331. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/149403 |
| spellingShingle | income income generation poverty alleviation food prices poverty equality Headey, Derek D. Food prices and poverty reduction in the long run |
| title | Food prices and poverty reduction in the long run |
| title_full | Food prices and poverty reduction in the long run |
| title_fullStr | Food prices and poverty reduction in the long run |
| title_full_unstemmed | Food prices and poverty reduction in the long run |
| title_short | Food prices and poverty reduction in the long run |
| title_sort | food prices and poverty reduction in the long run |
| topic | income income generation poverty alleviation food prices poverty equality |
| url | https://hdl.handle.net/10568/149403 |
| work_keys_str_mv | AT headeyderekd foodpricesandpovertyreductioninthelongrun |