Poverty and Price Transmission

Christian Elleby

No 211621, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: A key parameter determining the welfare impact from a world market shock is the price transmission elasticity. This paper proposes a model which explains a country's domestic price response to world market shocks in terms of its demand structure. The model delivers two testable predictions; price transmission is increasing in per capita food expenditure and in income inequality. In the empirical analysis of domestic price changes during the food crises I find significant inverse U-shaped relationships between domestic food price growth and per capita food expenditure. Unequal countries also experienced higher price growth but the relationship is less significant.

Keywords: Consumer/Household Economics; Food Security and Poverty (search for similar items in EconPapers)
Pages: 30
Date: 2015
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Related works:
Working Paper: Poverty and Price Transmission (2014)
Working Paper: Poverty and Price Transmission (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:211621

DOI: 10.22004/ag.econ.211621

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