Estimating household responses to trade reforms: Net consumers and net producers in rural Mexico

This paper explores an empirical methodology to assess the impacts of trade reforms in agriculture on household behavior in developing countries. I focus on consumption and income responses: when price reforms take place, households modify consumption and production decisions and local labor markets...

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Autor principal: Porto, Guido Gustavo
Formato: Articulo Preprint
Lenguaje:Español
Publicado: 2015
Materias:
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/127740
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id I19-R120-10915-127740
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Español
topic Economía
agricultural trade reforms
welfare and poverty impacts of trade policy
spellingShingle Economía
agricultural trade reforms
welfare and poverty impacts of trade policy
Porto, Guido Gustavo
Estimating household responses to trade reforms: Net consumers and net producers in rural Mexico
topic_facet Economía
agricultural trade reforms
welfare and poverty impacts of trade policy
description This paper explores an empirical methodology to assess the impacts of trade reforms in agriculture on household behavior in developing countries. I focus on consumption and income responses: when price reforms take place, households modify consumption and production decisions and local labor markets adjust. The paper proposes a joint estimator of demand and wage price elasticities from survey data. The method uses an empirical model of demand to extract price information from unit values, and uses this information to estimate the response of households to price reforms. By correcting unit values for quality effects and measurement error, the method overcomes the problem of the endogeneity of unit values. By endogeneizing household income, the model corrects potential biases in the estimation of own- and cross-price elasticities in consumption. I apply the method to an expenditure and income survey for rural Mexico. It is shown that the corrections suggested in this paper are empirically important. In particular, I show that allowing for consumption and income responses is a key element of an accurate empirical assessment of trade policy.
format Articulo
Preprint
author Porto, Guido Gustavo
author_facet Porto, Guido Gustavo
author_sort Porto, Guido Gustavo
title Estimating household responses to trade reforms: Net consumers and net producers in rural Mexico
title_short Estimating household responses to trade reforms: Net consumers and net producers in rural Mexico
title_full Estimating household responses to trade reforms: Net consumers and net producers in rural Mexico
title_fullStr Estimating household responses to trade reforms: Net consumers and net producers in rural Mexico
title_full_unstemmed Estimating household responses to trade reforms: Net consumers and net producers in rural Mexico
title_sort estimating household responses to trade reforms: net consumers and net producers in rural mexico
publishDate 2015
url http://sedici.unlp.edu.ar/handle/10915/127740
work_keys_str_mv AT portoguidogustavo estimatinghouseholdresponsestotradereformsnetconsumersandnetproducersinruralmexico
bdutipo_str Repositorios
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