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IMPACT OF ECONOMIC REFORM ON FOOD DEMAND, DOMINICAN REPUBLIC

Sovan Tun and Mervin J. Yetley

No 277672, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: This report examines the impact on food consumption of increased food prices resulting from economic reform measures adopted by the Dominican Republic in 1984. The response of urban and rural consumers of various income levels to these price increases was determined by estimating the structure of food demand. Prices rose for certain basic commodities including soya oil, wheat flour,-algar, bread, and milk. This led to the substitution of cheaper commodities and a decline in total caloric intake across all groups. Although higher income groups had a greater reduction in caloric intake, lower income urban consumers were most severely affected. An additional 34 percent, for an overall 77 percent of Dominican households, were placed at some degree of nutritional risk as a result of this policy. Alternative monetary policies should be explored to minimize potential negative nutrition effects. When consumers substitute locally produced food for imported food, U.S. food exporters face decreasing demand.

Keywords: Consumer/Household Economics; Demand and Price Analysis (search for similar items in EconPapers)
Pages: 16
Date: 1985-03
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerssr:277672

DOI: 10.22004/ag.econ.277672

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