The Impact of Food Inflation on Urban Poverty and Its Monetary Cost : Some Back-of-the-Envelope Calculations

This article uses a sample of 72 developing countries to estimate the change in the cost of alleviating urban poverty brought about by the recent increase in food prices. This cost is approximated by the change in the poverty deficit (PD), that is, the variation in financial resources required to el...

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Main Authors:	Dessus, Sebastien, Herrera, Santiago, De Hoyos, Rafael
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Measurement and Analysis of Poverty I320 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Human Resources Human Development Income Distribution Migration O150 Economic Development : Regional, Urban, and Rural Analyses Transportation O180 Socialist Systems and Transitional Economies : Urban, Rural, and Regional Economics P250 Agriculture: Aggregate Supply and Demand Analysis Prices Q110 Urban, Rural, and Regional Economics: Regional Migration Regional Labor Markets Population Neighborhood Characteristics R230
Online Access:	http://hdl.handle.net/10986/5644

id	okr-10986-5644
recordtype	oai_dc
spelling	okr-10986-56442021-04-23T14:02:23Z The Impact of Food Inflation on Urban Poverty and Its Monetary Cost : Some Back-of-the-Envelope Calculations Dessus, Sebastien Herrera, Santiago De Hoyos, Rafael Measurement and Analysis of Poverty I320 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Human Resources Human Development Income Distribution Migration O150 Economic Development : Regional, Urban, and Rural Analyses Transportation O180 Socialist Systems and Transitional Economies : Urban, Rural, and Regional Economics P250 Agriculture: Aggregate Supply and Demand Analysis Prices Q110 Urban, Rural, and Regional Economics: Regional Migration Regional Labor Markets Population Neighborhood Characteristics R230 This article uses a sample of 72 developing countries to estimate the change in the cost of alleviating urban poverty brought about by the recent increase in food prices. This cost is approximated by the change in the poverty deficit (PD), that is, the variation in financial resources required to eliminate poverty under perfect targeting. The results show that, for most countries, the cost represents less than 0.2% of gross domestic product. However, in the most severely affected, it may exceed 3%. In all countries, the change in the PD is mostly due to the negative real income effect of those households that were poor before the price shock, while the cost attributable to new households falling into poverty is negligible. Thus, in countries where transfer mechanisms with effective targeting already exist, the most cost-effective strategy would be to scale up such programs rather than designing tools to identify the new poor. 2012-03-30T07:33:50Z 2012-03-30T07:33:50Z 2008 Journal Article Agricultural Economics 01695150 http://hdl.handle.net/10986/5644 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Measurement and Analysis of Poverty I320 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Human Resources Human Development Income Distribution Migration O150 Economic Development : Regional, Urban, and Rural Analyses Transportation O180 Socialist Systems and Transitional Economies : Urban, Rural, and Regional Economics P250 Agriculture: Aggregate Supply and Demand Analysis Prices Q110 Urban, Rural, and Regional Economics: Regional Migration Regional Labor Markets Population Neighborhood Characteristics R230
spellingShingle	Measurement and Analysis of Poverty I320 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Human Resources Human Development Income Distribution Migration O150 Economic Development : Regional, Urban, and Rural Analyses Transportation O180 Socialist Systems and Transitional Economies : Urban, Rural, and Regional Economics P250 Agriculture: Aggregate Supply and Demand Analysis Prices Q110 Urban, Rural, and Regional Economics: Regional Migration Regional Labor Markets Population Neighborhood Characteristics R230 Dessus, Sebastien Herrera, Santiago De Hoyos, Rafael The Impact of Food Inflation on Urban Poverty and Its Monetary Cost : Some Back-of-the-Envelope Calculations
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This article uses a sample of 72 developing countries to estimate the change in the cost of alleviating urban poverty brought about by the recent increase in food prices. This cost is approximated by the change in the poverty deficit (PD), that is, the variation in financial resources required to eliminate poverty under perfect targeting. The results show that, for most countries, the cost represents less than 0.2% of gross domestic product. However, in the most severely affected, it may exceed 3%. In all countries, the change in the PD is mostly due to the negative real income effect of those households that were poor before the price shock, while the cost attributable to new households falling into poverty is negligible. Thus, in countries where transfer mechanisms with effective targeting already exist, the most cost-effective strategy would be to scale up such programs rather than designing tools to identify the new poor.
format	Journal Article
author	Dessus, Sebastien Herrera, Santiago De Hoyos, Rafael
author_facet	Dessus, Sebastien Herrera, Santiago De Hoyos, Rafael
author_sort	Dessus, Sebastien
title	The Impact of Food Inflation on Urban Poverty and Its Monetary Cost : Some Back-of-the-Envelope Calculations
title_short	The Impact of Food Inflation on Urban Poverty and Its Monetary Cost : Some Back-of-the-Envelope Calculations
title_full	The Impact of Food Inflation on Urban Poverty and Its Monetary Cost : Some Back-of-the-Envelope Calculations
title_fullStr	The Impact of Food Inflation on Urban Poverty and Its Monetary Cost : Some Back-of-the-Envelope Calculations
title_full_unstemmed	The Impact of Food Inflation on Urban Poverty and Its Monetary Cost : Some Back-of-the-Envelope Calculations
title_sort	impact of food inflation on urban poverty and its monetary cost : some back-of-the-envelope calculations
publishDate	2012
url	http://hdl.handle.net/10986/5644
_version_	1764395800916393984

The Impact of Food Inflation on Urban Poverty and Its Monetary Cost : Some Back-of-the-Envelope Calculations

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