Poor vs non-poor households in Uruguay: Welfare differences from food price changes

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Evidence suggests that household responses to price and income changes are significantly sensitive across income levels and rural-urban location. In this paper, we focus on poor households vs. non-poor households using two definitions of poverty, objective and subjective. We evaluate the differentia...

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Autores principales: Echeverría, Lucía, Molina, José Alberto
Formato: Documento de trabajo acceptedVersion
Lenguaje:Español
Publicado: GLO 2021
Materias:
Pobreza
Consumo de Alimentos
Sistemas de Demanda
Bienestar
Acceso en línea:https://nulan.mdp.edu.ar/id/eprint/3549/
https://nulan.mdp.edu.ar/id/eprint/3549/1/echeverria-molina-2021.pdf
Aporte de:
Nulan - Fac.Cs.Económicas (UNMdP) de Universidad Nacional de Mar del Plata (UNMdP)
id I29-R135-3549
record_format dspace
institution Universidad Nacional de Mar del Plata (UNMdP)
institution_str I-29
repository_str R-135
collection Nulan - Fac.Cs.Económicas (UNMdP)
language Español
orig_language_str_mv spa
topic Pobreza
Consumo de Alimentos
Sistemas de Demanda
Bienestar
spellingShingle Pobreza
Consumo de Alimentos
Sistemas de Demanda
Bienestar
Echeverría, Lucía
Molina, José Alberto
Poor vs non-poor households in Uruguay: Welfare differences from food price changes
topic_facet Pobreza
Consumo de Alimentos
Sistemas de Demanda
Bienestar
description Evidence suggests that household responses to price and income changes are significantly sensitive across income levels and rural-urban location. In this paper, we focus on poor households vs. non-poor households using two definitions of poverty, objective and subjective. We evaluate the differential responses of poor households vs. non-poor households to changes in food expenditures and prices and simulate the welfare losses from food price changes across poverty definitions. We use the QUAIDS model to estimate food elasticities with data from the National Expenditure and Household Income Survey, 2016-2017, from Uruguay. Expenditure elasticities at the food level reveal that bread and dairy products are a necessity-food category, regardless of the poverty status and across poverty definitions, while beverages are a luxury good. The demand sensitivity for the rest of the food categories differs by poverty status and poverty definitions. Uncompensated own-price elasticities indicate that when poverty is defined objectively, then changes in demand due to changes in price are greater for poor households (except for meat products). However, poor households, under the subjective definition, are more sensitive than non-poor households only to changes in beverage prices. Additionally, changes in household economic welfare due to price increases vary according to poverty status. On average, the percentage of total income needed to avoid a loss in economic welfare of poor households, defined by the objective method, is double that required by the non-poor households, for all price changes. However, differences are much smaller when using the subjective approach to measure poverty.
format Documento de trabajo
Documento de trabajo
acceptedVersion
author Echeverría, Lucía
Molina, José Alberto
author_facet Echeverría, Lucía
Molina, José Alberto
author_sort Echeverría, Lucía
title Poor vs non-poor households in Uruguay: Welfare differences from food price changes
title_short Poor vs non-poor households in Uruguay: Welfare differences from food price changes
title_full Poor vs non-poor households in Uruguay: Welfare differences from food price changes
title_fullStr Poor vs non-poor households in Uruguay: Welfare differences from food price changes
title_full_unstemmed Poor vs non-poor households in Uruguay: Welfare differences from food price changes
title_sort poor vs non-poor households in uruguay: welfare differences from food price changes
publisher GLO
publishDate 2021
url https://nulan.mdp.edu.ar/id/eprint/3549/
https://nulan.mdp.edu.ar/id/eprint/3549/1/echeverria-molina-2021.pdf
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AT molinajosealberto poorvsnonpoorhouseholdsinuruguaywelfaredifferencesfromfoodpricechanges
bdutipo_str Repositorios
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