Food Price Spikes and Strategic Interactions between the Public and Private Sectors: Market Failures or Governance Failures

Thomas S. Jayne () and David L. Tschirley

No 97142, Food Security Collaborative Working Papers from Michigan State University, Department of Agricultural, Food, and Resource Economics

Abstract: When food prices shoot over import parity, this often leads to social and political unrest and even the toppling of governments. If markets behaved efficiently and in the absence of trade barriers, food prices should not exceed the price in world markets plus the cost of importing it to domestic markets (i.e., import parity). However, food prices routinely soar above import parity in several countries of East and Southern Africa, causing widespread hunger and asset depletion among the poor.

Keywords: Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty (search for similar items in EconPapers)
Date: 2009-10
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