The impact of food price shocks on poverty and vulnerability of urban households in Iran
Yaprak Kurstal and
Davide Viaggi ()
Bio-based and Applied Economics Journal, 2020, vol. 09, issue 1
The aim of this paper is to assess the welfare effects of food price changes on urban households’ poverty and vulnerability. This is achieved by using Hicksian price Compensating Variation (CV) and compensated price elasticities, based on Quadratic Almost Ideal Demand System (QAIDS). The study includes in total eight food groups (cereals, meats, dairy, cooking oil, sugar, fruits, vegetables, and tea and coffee) and encompasses 18852 urban households. The results showed that the wel-fare index for food groups was 20 USD (2.52% of the monthly average income of urban households). After increasing food prices, based on the poverty line, 41% of urban households were observed to be below the poverty line and the number of poor households increased by 10.63%. To enable food security and to execute food safety goals, the Iranian government should compensate for the welfare losses by supportive policies such as direct subsidy payments to vulnerable households.
Keywords: Food; Consumption/Nutrition/Food; Safety (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:aieabj:308837
Access Statistics for this article
More articles in Bio-based and Applied Economics Journal from Italian Association of Agricultural and Applied Economics (AIEAA) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().