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Food Price Inflation And Consumer Welfare In Ghana

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  • Osei-Asare, Yaw Bonsu
  • Eghan, Mark

Abstract

The paper analyses the effects of food price inflation on Ghanaian households using GLSS-5 household data. Expenditure endogeneity and truncated expenditures were controlled in the estimation process using the “Augmented Regression Approach” and Heckman’s two-stage procedure, respectively. Symmetry and homogeneity conditions were rejected in the unconstrained LA/AIDS model. The study reveals that cereals and bread; fish; vegetables; and roots and tubers will continue to constitute important share of Ghanaian food expenditure as they collectively constitute 67% of future food expenditure. Food price inflation between 2005 and 2011 has eroded real household food purchasing power by 47.18%.

Suggested Citation

  • Osei-Asare, Yaw Bonsu & Eghan, Mark, 2013. "Food Price Inflation And Consumer Welfare In Ghana," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 1(1), pages 1-13, July.
    • Handle: RePEc:ags:ijfaec:156140
    DOI: 10.22004/ag.econ.156140
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    References listed on IDEAS

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    Cited by:

    1. Rahman, Mohammad Chhiddikur, 2018. "Welfare Impact of Asymmetric Price Transmission on Bangladesh Rice Consumers," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 251114, March.
    2. Abdelkrim Araar & Paolo Verme, 2019. "Prices and Welfare," Springer Books, Springer, number 978-3-030-17423-1, June.
    3. Rahman, Mohammad Chhiddikur, 2020. "Welfare Impact of Asymmetric Price Transmission on Bangladesh Rice Consumers," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 242248, March.
    4. Layani, Ghasem & Bakhshoodeh, Mohammad & Aghabeygi, Mona & Kurstal, Yaprak & Viaggi, Davide, 2020. "The impact of food price shocks on poverty and vulnerability of urban households in Iran," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 9(1), April.

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