A general equilibrium analysis of alternative scenarios for food subsidy reform in Egypt
This paper uses a Computable General Equilibrium (CGE) model to simulate the short-run effects of alternative food- subsidy scenarios. Savings from reduced subsidy spending are used to reduce direct taxes uniformly for all household types. The model uses a 1996/97 database with detailed household in...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
1999
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/161261 |
| _version_ | 1855535562410164224 |
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| author | Lofgren, Hans El-Said, Moataz |
| author_browse | El-Said, Moataz Lofgren, Hans |
| author_facet | Lofgren, Hans El-Said, Moataz |
| author_sort | Lofgren, Hans |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper uses a Computable General Equilibrium (CGE) model to simulate the short-run effects of alternative food- subsidy scenarios. Savings from reduced subsidy spending are used to reduce direct taxes uniformly for all household types. The model uses a 1996/97 database with detailed household information. The simulated impact of targeting or eliminating oil and sugar subsidies is small: disaggregated real household consumption changes by ±0.3 percent. It is progressive if the subsidy is targeted to the needy (the bottom two quintiles in rural and urban areas) and regressive if it is eliminated. The targeting of all food subsidies is pro-needy, in part due to important indirect effects. It raises the consumption of the needy by 0.5 percent with, on average, little change for the nonneedy. The strongest gains are recorded for the rural needy (consumption increase by 1.0 percent). Food subsidy elimination is regressive: the needy suffer a consumption loss of 1.1 percent. If the government savings instead are transferred to the needy, the impact is reversed: consumption increases by 4.2 percent for needy households while the nonneedy register a small loss. The overall policy implication of the paper is that there is scope for reducing food subsidy spending without hurting the low-income groups. |
| format | Artículo preliminar |
| id | CGSpace161261 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 1999 |
| publishDateRange | 1999 |
| publishDateSort | 1999 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1612612025-11-06T07:16:58Z A general equilibrium analysis of alternative scenarios for food subsidy reform in Egypt Lofgren, Hans El-Said, Moataz food policies subsidies equilibrium theory models consumption This paper uses a Computable General Equilibrium (CGE) model to simulate the short-run effects of alternative food- subsidy scenarios. Savings from reduced subsidy spending are used to reduce direct taxes uniformly for all household types. The model uses a 1996/97 database with detailed household information. The simulated impact of targeting or eliminating oil and sugar subsidies is small: disaggregated real household consumption changes by ±0.3 percent. It is progressive if the subsidy is targeted to the needy (the bottom two quintiles in rural and urban areas) and regressive if it is eliminated. The targeting of all food subsidies is pro-needy, in part due to important indirect effects. It raises the consumption of the needy by 0.5 percent with, on average, little change for the nonneedy. The strongest gains are recorded for the rural needy (consumption increase by 1.0 percent). Food subsidy elimination is regressive: the needy suffer a consumption loss of 1.1 percent. If the government savings instead are transferred to the needy, the impact is reversed: consumption increases by 4.2 percent for needy households while the nonneedy register a small loss. The overall policy implication of the paper is that there is scope for reducing food subsidy spending without hurting the low-income groups. 1999 2024-11-21T09:54:30Z 2024-11-21T09:54:30Z Working Paper https://hdl.handle.net/10568/161261 en Open Access application/pdf International Food Policy Research Institute Lofgren, Hans; El-Said, Moataz. 1999. A general equilibrium analysis of alternative scenarios for food subsidy reform in Egypt. TMD Discussion Paper 48. https://hdl.handle.net/10568/161261 |
| spellingShingle | food policies subsidies equilibrium theory models consumption Lofgren, Hans El-Said, Moataz A general equilibrium analysis of alternative scenarios for food subsidy reform in Egypt |
| title | A general equilibrium analysis of alternative scenarios for food subsidy reform in Egypt |
| title_full | A general equilibrium analysis of alternative scenarios for food subsidy reform in Egypt |
| title_fullStr | A general equilibrium analysis of alternative scenarios for food subsidy reform in Egypt |
| title_full_unstemmed | A general equilibrium analysis of alternative scenarios for food subsidy reform in Egypt |
| title_short | A general equilibrium analysis of alternative scenarios for food subsidy reform in Egypt |
| title_sort | general equilibrium analysis of alternative scenarios for food subsidy reform in egypt |
| topic | food policies subsidies equilibrium theory models consumption |
| url | https://hdl.handle.net/10568/161261 |
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