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Modified Price, Production, and Income Impacts of Food Aid under Market Differentiated Distribution

Author

Listed:
  • Keith D. Rogers
  • Uma K. Srivastava
  • Earl O. Heady

Abstract

Estimation of negative production impacts of food aid rests heavily on measurement of resulting price changes. Previous studies have assumed an exogenous shift in supply resulting from distribution of the imported commodities but have ignored the income effect on demand. Distribution of food aid commodities to consumers at concessional prices provides an increase in real income and corresponding shift in demand for food. The shift in demand compensates for part of the exogenous shift in supply, reducing the potential impact on domestic prices. Based on market differentiation, the production impact in India is estimated at one tenth of previous estimates.

Suggested Citation

  • Keith D. Rogers & Uma K. Srivastava & Earl O. Heady, 1972. "Modified Price, Production, and Income Impacts of Food Aid under Market Differentiated Distribution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(2), pages 201-208.
    • Handle: RePEc:oup:ajagec:v:54:y:1972:i:2:p:201-208.
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    Citations

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    Cited by:

    1. Bezuneh, Mesfin & Deaton, Brady J., 1981. "Food Aid Disincentives And Economic Development: Some Reconsiderations In Light Of The Tunisian Experience," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279382, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Mesfin Bezuneh & Brady Deaton & Segu Zuhair, 2003. "Food Aid Disincentives: the Tunisian Experience," Review of Development Economics, Wiley Blackwell, vol. 7(4), pages 609-621, November.
    3. Ball, Richard, 1990. "A Note On The Income Effects Of P.L. 480 Food Aid," 1990 Annual meeting, August 5-8, Vancouver, Canada 270914, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Hoddinott, John & Margolies, Amy, 2012. "Mapping the Impacts of Food Aid: Current Knowledge and Future Directions," WIDER Working Paper Series 034, World Institute for Development Economic Research (UNU-WIDER).
    5. repec:unu:wpaper:wp2012-34 is not listed on IDEAS
    6. Jaouad, Mohamed, 1994. "An agricultural policy and trade model for Morocco," ISU General Staff Papers 1994010108000011483, Iowa State University, Department of Economics.
    7. Christopher Stevens, 1977. "Food Aid: More Sinned against than Sinning?," Development Policy Review, Overseas Development Institute, vol. 0(2), pages 71-85, October.
    8. Amy Margolies & John Hoddinott, 2012. "Mapping the Impacts of Food Aid: Current Knowledge and Future Directions," WIDER Working Paper Series wp-2012-034, World Institute for Development Economic Research (UNU-WIDER).

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