Effects of food prices on poverty: the case of Paraguay, a food exporter and a non-fully urbanized country

A vast proportion of households in developing countries like Paraguay are both consumers and producers of food, and thus the effects of food price fluctuations on well-being are not obvious. Historically, the agricultural sector in Paraguay has played a fundamental role in economic development and h...

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Autores principales: Garriga, Santiago, Lugo, María Ana, Puig, Jorge Pablo
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2017
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Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/170342
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spelling I19-R120-10915-1703422024-09-20T04:09:27Z http://sedici.unlp.edu.ar/handle/10915/170342 Effects of food prices on poverty: the case of Paraguay, a food exporter and a non-fully urbanized country Garriga, Santiago Lugo, María Ana Puig, Jorge Pablo 2017-11 2017 2024-09-19T12:53:23Z en Ciencias Económicas food prices distribution poverty policy response Paraguay A vast proportion of households in developing countries like Paraguay are both consumers and producers of food, and thus the effects of food price fluctuations on well-being are not obvious. Historically, the agricultural sector in Paraguay has played a fundamental role in economic development and has contributed significantly and increasingly to economic growth. In recent years, the sharp movements in commodity prices had added to the inherent volatility of the sector related to climate conditions. ‘This work uses the 2011/12 expenditure and income survey as well as monthly price data at item level for 2007-15 that allows tracking 127 food items to simulate the effect of a potential hike in food prices on welfare. Our main results suggest that the expenditure effect is negative and regressive everywhere, but larger in rural than urban areas. The income effect is positive and progressive in rural areas and negligible in urban areas. Therefore, we find that the potential overall impact of an unexpected increase in food prices in Paraguay is a very flat Ushaped curve. We conclude with a simple simulation exercise of the potential effects of the introduction of a policy response to help those affected by an increase in food prices. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
food prices
distribution
poverty
policy response
Paraguay
spellingShingle Ciencias Económicas
food prices
distribution
poverty
policy response
Paraguay
Garriga, Santiago
Lugo, María Ana
Puig, Jorge Pablo
Effects of food prices on poverty: the case of Paraguay, a food exporter and a non-fully urbanized country
topic_facet Ciencias Económicas
food prices
distribution
poverty
policy response
Paraguay
description A vast proportion of households in developing countries like Paraguay are both consumers and producers of food, and thus the effects of food price fluctuations on well-being are not obvious. Historically, the agricultural sector in Paraguay has played a fundamental role in economic development and has contributed significantly and increasingly to economic growth. In recent years, the sharp movements in commodity prices had added to the inherent volatility of the sector related to climate conditions. ‘This work uses the 2011/12 expenditure and income survey as well as monthly price data at item level for 2007-15 that allows tracking 127 food items to simulate the effect of a potential hike in food prices on welfare. Our main results suggest that the expenditure effect is negative and regressive everywhere, but larger in rural than urban areas. The income effect is positive and progressive in rural areas and negligible in urban areas. Therefore, we find that the potential overall impact of an unexpected increase in food prices in Paraguay is a very flat Ushaped curve. We conclude with a simple simulation exercise of the potential effects of the introduction of a policy response to help those affected by an increase in food prices.
format Objeto de conferencia
Objeto de conferencia
author Garriga, Santiago
Lugo, María Ana
Puig, Jorge Pablo
author_facet Garriga, Santiago
Lugo, María Ana
Puig, Jorge Pablo
author_sort Garriga, Santiago
title Effects of food prices on poverty: the case of Paraguay, a food exporter and a non-fully urbanized country
title_short Effects of food prices on poverty: the case of Paraguay, a food exporter and a non-fully urbanized country
title_full Effects of food prices on poverty: the case of Paraguay, a food exporter and a non-fully urbanized country
title_fullStr Effects of food prices on poverty: the case of Paraguay, a food exporter and a non-fully urbanized country
title_full_unstemmed Effects of food prices on poverty: the case of Paraguay, a food exporter and a non-fully urbanized country
title_sort effects of food prices on poverty: the case of paraguay, a food exporter and a non-fully urbanized country
publishDate 2017
url http://sedici.unlp.edu.ar/handle/10915/170342
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