The Price Is Not Always Right: On the Impacts of Commodity Prices on Households (and Countries)
Daniel Lederman and
World Bank Research Observer, 2016, vol. 31, issue 1, 168-197
This paper provides an overview of the impact that one-time changes in commodity and other prices have on household welfare. It begins with a collection of stylized facts related to commodities based on household survey data from Latin America and Africa. The data uncovers strong commodity dependence on both regions: households typically allocate a large fraction of their budget to commodities, and they often also depend on commodities to earn their income. This income and expenditure dependency suggests sizable impacts and adjustments following commodity price shocks. The article explores these effects with a review of the relevant literature. The authors study consumption and income responses, labor market responses, and spillovers across sectors. The paper provides evidence on the relative magnitudes of various mechanisms through which commodity prices affect household (and national) welfare in developing economies. Commodity price changes, Poverty and welfare impacts, Net consumers and net producers.
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: The price is not always right: on the impacts of commodity prices on households (and countries) (2016)
Working Paper: The price is not always right: on the impacts of (commodity) prices on households (and countries) (2014)
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:oup:wbrobs:v:31:y:2016:i:1:p:168-197.
Ordering information: This journal article can be ordered from
Access Statistics for this article
World Bank Research Observer is currently edited by Shantayanan Devarajan
More articles in World Bank Research Observer from World Bank Group Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().