The Impact of the Food Price Crisis on Consumption and Caloric Availability in Pakistan : Evidence from Repeated Cross-sectional and Panel Data

Welfare losses from the 2008 food price crisis in Pakistan are deepening the gap between poor and non poor populations and further increasing inequality between the provinces. To estimate welfare losses, the reduction in caloric availability at household level is measured. The analysis of calorie intake by source supports the notion that rural households were shielded from the worst effects of the crisis by their capacity to grow their own food. Compensating variation estimates suggest that the average household would need 38 percent of its total precrisis expenditure to maintain precrisis consumption levels. The impact of the food price crisis (measured as the percentage of total expenditure required to restore consumption to the precrisis level) peaked at the end of 2008 to twice as high as at the start of the year. Average household caloric availability fell by almost 8 percent between 2006 and first half of 2008. Urban households were relatively worse off than rural households during the crisis. Income gains from sales of agricultural commodities produced by rural households presumably offset the negative impact of the food crisis to some degree. The drawdown of assets over 2008-10 was another important coping mechanism, especially for households without access to land.

Bibliographic Details

Main Authors:	Hong, Seo Yeon, Friedman, Jed, Hou, Xiaohui
Language:	English en_US
Published:	World Bank, Washington, DC 2011-11
Subjects:	ABSOLUTE TERMS, AGRICULTURAL ACTIVITY, AGRICULTURAL COMMODITIES, AGRICULTURAL ECONOMICS, AGRICULTURAL LAND, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTION, AGRICULTURE, AVERAGE PRICES, BEEF, BEVERAGES, BREAD, BUTTER, CALORIC CONSUMPTION, CALORIE INTAKE, CASH TRANSFER PROGRAMS, CASH TRANSFERS, CEREAL PRODUCTS, CEREALS, CHEESE, CHEWING GUM, CHOCOLATE, CINNAMON, CITRUS FRUIT, CONDENSED MILK, CONDIMENTS, CONFECTIONERY, CONSUMER PRICE, CONSUMER PRICE INDEX, COOKING, COPING MECHANISMS, CORN, COST OF FOOD, CREAM, CREDIT MARKETS, CROP PRODUCTION, DAIRY, DATES, DIETARY DIVERSITY, DISTRIBUTIONAL EFFECTS, ECONOMIC GROWTH, ECONOMIC SHOCKS, EGGS, EXPENDITURE, EXPENDITURES, FARM INCOME, FARMERS, FATS, FOOD COMMODITIES, FOOD CONSUMPTION, FOOD GOODS, FOOD INSECURITY, FOOD ITEMS, FOOD POLICY, FOOD PRICE, FOOD PRICES, FOOD PRODUCTION, FRUIT, FRUIT JUICES, FRUIT VEGETABLES, FRUITS, GRAINS, GRAPES, HONEY, HOUSEHOLD BUDGET, HOUSEHOLD CONSUMPTION, HOUSEHOLD HEAD, HOUSEHOLD HEADS, HOUSEHOLD SIZE, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HUMAN CAPITAL, HUMAN DEVELOPMENT, INCOME, INCOME DISTRIBUTION, INCOME GAINS, INCOME SHOCK, INCOME SUPPORT, INEQUALITY, INFLATION, IRRIGATION, JAMS, JUICES, LANDLESS HOUSEHOLDS, LIVESTOCK OWNERSHIP, MALNUTRITION, MANGO, MARGARINE, MEAT, MUTTON, NATURAL DISASTERS, NUTRITION, PEANUTS, PEPPER, POOR, POOR FAMILIES, POOR HOUSEHOLD, POOR HOUSEHOLDS, POOR RURAL HOUSEHOLDS, POORER HOUSEHOLDS, POTATO, POVERTY LINE, PRICE CHANGE, PRICE CHANGES, PRICE INCREASE, PRICE INCREASES, PRICE INDEX, PRICE LEVEL, PRICE TREND, PULSES, REGIONAL DIFFERENCE, REGIONAL DIMENSIONS, REGIONAL INCOME, RETAIL, RETAIL PRICE, RETAIL PRICES, RICE, RURAL, RURAL AREA, RURAL AREAS, RURAL DIFFERENCES, RURAL HOUSEHOLDS, RURAL POOR, SAFETY NET, SAFETY NET PROGRAMS, SAFETY NET SYSTEM, SALE, SALES, SCHOOLING, SESAME SEEDS, SOCIAL PROTECTION, SOYBEAN, SPICES, STAPLE FOODS, SUBSTITUTE, SUBSTITUTION, SUBSTITUTION EFFECT, SUGAR, SUGARCANE, TARGETING, TEA, TECHNICAL ASSISTANCE, TURMERIC, VEGETABLES, VOLATILITY, VULNERABLE SEGMENTS, WALNUT, WELFARE IMPLICATIONS, WELFARE INDICATOR, WHEAT, WHEAT FLOUR, WHEAT PRODUCTION, food crisis, compensating variations,
Online Access:	http://documents.worldbank.org/curated/en/2011/11/15633637/impact-food-price-crisis-consumption-caloric-availability-pakistan-evidence-repeated-cross-sectional-panel-data https://hdl.handle.net/10986/13584
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