International risk sharing for food staples

Scott Bradford (), Digvijay Negi () and Bharat Ramaswami

Journal of Development Economics, 2022, vol. 158, issue C

Abstract: The global output of food staples is far more stable than most individual nations' outputs, but does this lead to consumption risk sharing? This paper applies tools from the risk sharing literature to address this question for rice, wheat, and maize, using a multilateral risk sharing model that, unlike the canonical model, accounts for trade costs. While the data show that optimal risk sharing does not occur, the wheat market comes closest to the idealized model. Our analysis also implies that both trade and storage play significant roles in smoothing domestic output shocks. Further, we find that risk sharing tends to rise with a nation's income.

Keywords: Food markets; Risk sharing; International trade; Supply shocks (search for similar items in EconPapers)
JEL-codes: D52 F14 Q17 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304387822000578
Full text for ScienceDirect subscribers only

Related works:
Working Paper: International Risk Sharing for Food Staples (2022)
Working Paper: International risk sharing for food staples (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:158:y:2022:i:c:s0304387822000578

DOI: 10.1016/j.jdeveco.2022.102894

Access Statistics for this article

Journal of Development Economics is currently edited by M. R. Rosenzweig

More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().