The Price is Not Always Right : On the Impacts of (Commodity) Prices on Households (and Countries)
This paper provides an overview of the impact of once-and-for-all changes in commodity prices and other prices on household welfare. It begins with a collection of stylized facts related to commodities based on household survey data from Latin Amer...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/05/19457803/price-not-always-right-impacts-commodity-prices-households-countries http://hdl.handle.net/10986/18344 |
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okr-10986-183442021-04-23T14:03:44Z The Price is Not Always Right : On the Impacts of (Commodity) Prices on Households (and Countries) Lederman, Daniel Porto, Guido ADVERSE EFFECTS AGGREGATE SUPPLY AGRICULTURAL PRICES AGRICULTURE ARBITRAGE BARRIER COMMERCIAL FARMING COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES COMPARATIVE ANALYSIS COMPETITIVE MARKETS CONSTANT MARGINAL COSTS CONSUMER GOODS CONSUMER PRICES CONSUMERS CORN PRICES CUSTOMS UNION DEMAND ANALYSIS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION OF INCOME DOMESTIC ECONOMY DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES ECONOMETRICS ECONOMIC CONDITIONS ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC REFORM ECONOMICS ELASTICITY EMPLOYMENT ENERGY PRICES EQUILIBRIUM PRICES EQUILIBRIUM WAGES EXCHANGE RATE EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT BARRIERS EXPORT SECTOR EXPORTS FACTOR PRICES FACTORS OF PRODUCTION FINANCIAL CRISES FINANCIAL CRISIS FOOD PRICE FOOD PRICES GDP GENERAL EQUILIBRIUM GLOBAL MARKET GLOBAL MARKETS GLOBALIZATION IMPERFECT COMPETITION INCOME INCOME EFFECT INCOME EFFECTS INCOMES INEFFICIENCY INFANT MORTALITY INSURANCE INTERMEDIATE GOODS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKETS LABOR REGULATIONS LABOR SUPPLY LIVING STANDARDS LOCAL CURRENCY LOW-INCOME COUNTRIES MARKET EFFICIENCY MARKET EQUILIBRIUM MARKET FAILURES MARKET FLUCTUATIONS MARKET INTEGRATION MARKET LIBERALIZATION MARKET POWER MARKET REFORMS MARKET STRUCTURE MARKET VALUE MARKET WAGE MARKETING MARKETING BOARD MIDDLE-INCOME ECONOMIES NATIONAL ECONOMY NATIONAL INCOME NATURAL RESOURCE OPEN ECONOMY OPPORTUNITY COST OUTPUT OUTPUTS POVERTY ALLEVIATION PRICE CHANGE PRICE CHANGES PRICE DECLINES PRICE EFFECT PRICE ELASTICITY PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE INDICES PRICE INFLATION PRICE VARIATIONS PRICE VOLATILITY PRICING POLICIES PRODUCT MARKETS PRODUCTIVE ASSETS PRODUCTIVITY PURCHASING PURCHASING POWER RATE OF RETURN REAL WAGES REGIONAL TRADE RETAIL RISK PREMIUM RURAL LABOR SALE SALES SAVINGS SHADOW PRICE SKILLED LABOR SKILLED WORKERS SOCIAL PROTECTION SUBSTITUTE SUBSTITUTION SUNK COSTS TAX THIRD WORLD TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS TRANSACTION COSTS TRANSACTIONS COSTS UNSKILLED WORKERS UTILITY FUNCTION UTILITY MAXIMIZATION VOLATILITY WAGE DETERMINATION WAGES WEALTH WORKING CAPITAL This paper provides an overview of the impact of once-and-for-all changes in commodity prices and other prices on household welfare. It begins with a collection of stylized facts related to commodities based on household survey data from Latin America and Africa. The data uncover strong commodity dependence in both continents: households typically allocate a large fraction of their budget to commodities and they often depend on commodities to earn their income. This income and expenditure dependency suggests sizable impacts and adjustments following commodity-price shocks. The paper explores these effects with a review of the literature. It studies consumption and income responses, labor-market responses, and spillovers across sectors. It ends up providing evidence on the relative magnitudes of various mechanisms through which commodity prices affect household (and national) welfare in developing economies. 2014-05-15T16:05:50Z 2014-05-15T16:05:50Z 2014-05 http://documents.worldbank.org/curated/en/2014/05/19457803/price-not-always-right-impacts-commodity-prices-households-countries http://hdl.handle.net/10986/18344 English en_US Policy Research Working Paper;No. 6858 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Latin America & Caribbean Africa Latin America |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADVERSE EFFECTS AGGREGATE SUPPLY AGRICULTURAL PRICES AGRICULTURE ARBITRAGE BARRIER COMMERCIAL FARMING COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES COMPARATIVE ANALYSIS COMPETITIVE MARKETS CONSTANT MARGINAL COSTS CONSUMER GOODS CONSUMER PRICES CONSUMERS CORN PRICES CUSTOMS UNION DEMAND ANALYSIS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION OF INCOME DOMESTIC ECONOMY DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES ECONOMETRICS ECONOMIC CONDITIONS ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC REFORM ECONOMICS ELASTICITY EMPLOYMENT ENERGY PRICES EQUILIBRIUM PRICES EQUILIBRIUM WAGES EXCHANGE RATE EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT BARRIERS EXPORT SECTOR EXPORTS FACTOR PRICES FACTORS OF PRODUCTION FINANCIAL CRISES FINANCIAL CRISIS FOOD PRICE FOOD PRICES GDP GENERAL EQUILIBRIUM GLOBAL MARKET GLOBAL MARKETS GLOBALIZATION IMPERFECT COMPETITION INCOME INCOME EFFECT INCOME EFFECTS INCOMES INEFFICIENCY INFANT MORTALITY INSURANCE INTERMEDIATE GOODS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKETS LABOR REGULATIONS LABOR SUPPLY LIVING STANDARDS LOCAL CURRENCY LOW-INCOME COUNTRIES MARKET EFFICIENCY MARKET EQUILIBRIUM MARKET FAILURES MARKET FLUCTUATIONS MARKET INTEGRATION MARKET LIBERALIZATION MARKET POWER MARKET REFORMS MARKET STRUCTURE MARKET VALUE MARKET WAGE MARKETING MARKETING BOARD MIDDLE-INCOME ECONOMIES NATIONAL ECONOMY NATIONAL INCOME NATURAL RESOURCE OPEN ECONOMY OPPORTUNITY COST OUTPUT OUTPUTS POVERTY ALLEVIATION PRICE CHANGE PRICE CHANGES PRICE DECLINES PRICE EFFECT PRICE ELASTICITY PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE INDICES PRICE INFLATION PRICE VARIATIONS PRICE VOLATILITY PRICING POLICIES PRODUCT MARKETS PRODUCTIVE ASSETS PRODUCTIVITY PURCHASING PURCHASING POWER RATE OF RETURN REAL WAGES REGIONAL TRADE RETAIL RISK PREMIUM RURAL LABOR SALE SALES SAVINGS SHADOW PRICE SKILLED LABOR SKILLED WORKERS SOCIAL PROTECTION SUBSTITUTE SUBSTITUTION SUNK COSTS TAX THIRD WORLD TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS TRANSACTION COSTS TRANSACTIONS COSTS UNSKILLED WORKERS UTILITY FUNCTION UTILITY MAXIMIZATION VOLATILITY WAGE DETERMINATION WAGES WEALTH WORKING CAPITAL |
| spellingShingle |
ADVERSE EFFECTS AGGREGATE SUPPLY AGRICULTURAL PRICES AGRICULTURE ARBITRAGE BARRIER COMMERCIAL FARMING COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES COMPARATIVE ANALYSIS COMPETITIVE MARKETS CONSTANT MARGINAL COSTS CONSUMER GOODS CONSUMER PRICES CONSUMERS CORN PRICES CUSTOMS UNION DEMAND ANALYSIS DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DISTRIBUTION OF INCOME DOMESTIC ECONOMY DOMESTIC MARKETS DOMESTIC PRICE DOMESTIC PRICES ECONOMETRICS ECONOMIC CONDITIONS ECONOMIC CRISIS ECONOMIC DEVELOPMENT ECONOMIC REFORM ECONOMICS ELASTICITY EMPLOYMENT ENERGY PRICES EQUILIBRIUM PRICES EQUILIBRIUM WAGES EXCHANGE RATE EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT BARRIERS EXPORT SECTOR EXPORTS FACTOR PRICES FACTORS OF PRODUCTION FINANCIAL CRISES FINANCIAL CRISIS FOOD PRICE FOOD PRICES GDP GENERAL EQUILIBRIUM GLOBAL MARKET GLOBAL MARKETS GLOBALIZATION IMPERFECT COMPETITION INCOME INCOME EFFECT INCOME EFFECTS INCOMES INEFFICIENCY INFANT MORTALITY INSURANCE INTERMEDIATE GOODS INTERNATIONAL MARKETS INTERNATIONAL TRADE LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKETS LABOR REGULATIONS LABOR SUPPLY LIVING STANDARDS LOCAL CURRENCY LOW-INCOME COUNTRIES MARKET EFFICIENCY MARKET EQUILIBRIUM MARKET FAILURES MARKET FLUCTUATIONS MARKET INTEGRATION MARKET LIBERALIZATION MARKET POWER MARKET REFORMS MARKET STRUCTURE MARKET VALUE MARKET WAGE MARKETING MARKETING BOARD MIDDLE-INCOME ECONOMIES NATIONAL ECONOMY NATIONAL INCOME NATURAL RESOURCE OPEN ECONOMY OPPORTUNITY COST OUTPUT OUTPUTS POVERTY ALLEVIATION PRICE CHANGE PRICE CHANGES PRICE DECLINES PRICE EFFECT PRICE ELASTICITY PRICE FLUCTUATIONS PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE INDICES PRICE INFLATION PRICE VARIATIONS PRICE VOLATILITY PRICING POLICIES PRODUCT MARKETS PRODUCTIVE ASSETS PRODUCTIVITY PURCHASING PURCHASING POWER RATE OF RETURN REAL WAGES REGIONAL TRADE RETAIL RISK PREMIUM RURAL LABOR SALE SALES SAVINGS SHADOW PRICE SKILLED LABOR SKILLED WORKERS SOCIAL PROTECTION SUBSTITUTE SUBSTITUTION SUNK COSTS TAX THIRD WORLD TRADE LIBERALIZATION TRADE POLICIES TRADE POLICY TRADE REFORMS TRANSACTION COSTS TRANSACTIONS COSTS UNSKILLED WORKERS UTILITY FUNCTION UTILITY MAXIMIZATION VOLATILITY WAGE DETERMINATION WAGES WEALTH WORKING CAPITAL Lederman, Daniel Porto, Guido The Price is Not Always Right : On the Impacts of (Commodity) Prices on Households (and Countries) |
| geographic_facet |
Africa Latin America & Caribbean Africa Latin America |
| relation |
Policy Research Working Paper;No. 6858 |
| description |
This paper provides an overview of the
impact of once-and-for-all changes in commodity prices and
other prices on household welfare. It begins with a
collection of stylized facts related to commodities based on
household survey data from Latin America and Africa. The
data uncover strong commodity dependence in both continents:
households typically allocate a large fraction of their
budget to commodities and they often depend on commodities
to earn their income. This income and expenditure dependency
suggests sizable impacts and adjustments following
commodity-price shocks. The paper explores these effects
with a review of the literature. It studies consumption and
income responses, labor-market responses, and spillovers
across sectors. It ends up providing evidence on the
relative magnitudes of various mechanisms through which
commodity prices affect household (and national) welfare in
developing economies. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Lederman, Daniel Porto, Guido |
| author_facet |
Lederman, Daniel Porto, Guido |
| author_sort |
Lederman, Daniel |
| title |
The Price is Not Always Right : On the Impacts of (Commodity) Prices on Households (and Countries) |
| title_short |
The Price is Not Always Right : On the Impacts of (Commodity) Prices on Households (and Countries) |
| title_full |
The Price is Not Always Right : On the Impacts of (Commodity) Prices on Households (and Countries) |
| title_fullStr |
The Price is Not Always Right : On the Impacts of (Commodity) Prices on Households (and Countries) |
| title_full_unstemmed |
The Price is Not Always Right : On the Impacts of (Commodity) Prices on Households (and Countries) |
| title_sort |
price is not always right : on the impacts of (commodity) prices on households (and countries) |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/05/19457803/price-not-always-right-impacts-commodity-prices-households-countries http://hdl.handle.net/10986/18344 |
| _version_ |
1764440676213194752 |