Do price increases for staple foods help or hurt the rural poor?

Martin Ravallion

No 167, Policy Research Working Paper Series from The World Bank

Abstract: The effect on the poor of changes in the price of staple foods is a central issue in debates on development policy. In the short run the rural rich are likely to gain, and the rural poor to lose, from an increase in the relative price of food staples in a food producing economy. However, in the long run the welfare of a typical poor household will be neutral to such price increases (after allowing for wage adjustments), and the poorest households will benefit somewhat.

Keywords: Economic Theory&Research; Environmental Economics&Policies; Poverty Lines; Markets and Market Access; Access to Markets (search for similar items in EconPapers)
Date: 1989-03-31
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Citations: View citations in EconPapers (8)

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