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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. Abdelkrim Araar & Paolo Verme, 2019. "Prices and Welfare," Springer Books, Springer, number 978-3-030-17423-1, December.
    2. 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.
    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, September.

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