Rising Food Prices and Household Welfare : Evidence from Brazil in 2008

Food price inflation in Brazil in the twelve months to June 2008 was 18 percent, while overall inflation was seven percent. Using spatially disaggregated monthly data on consumer prices and two different household surveys, we estimate the welfare c...

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Main Authors: Ferreira, Francisco H.G., Fruttero, Anna, Leite, Phillippe, Lucchetti, Leonardo
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
CA
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110928105536
http://hdl.handle.net/10986/3581
id okr-10986-3581
recordtype oai_dc
spelling okr-10986-35812021-04-23T14:02:11Z Rising Food Prices and Household Welfare : Evidence from Brazil in 2008 Ferreira, Francisco H.G. Fruttero, Anna Leite, Phillippe Lucchetti, Leonardo AGRICULTURAL ACTIVITIES AGRICULTURAL ACTIVITY AGRICULTURAL COMMODITIES AGRICULTURAL LABOUR AGRICULTURAL OUTPUT AGRICULTURAL PRICE AGRICULTURAL PRICES AGRICULTURAL PRODUCTION AGRICULTURAL SECTORS AGRICULTURAL WAGES AGRICULTURAL WORKERS AGRICULTURAL WORKFORCE AGRICULTURE ANIMAL HUSBANDRY AVERAGE PRICE BASIC FOODSTUFFS BEEF CA CARIBBEAN REGION CASH TRANSFER PROGRAM CASH TRANSFER PROGRAMS CASH TRANSFERS CEREALS COMMODITY PRICE COMMODITY PRICES CONDIMENTS CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CONSUMER SURPLUS CONSUMPTION EXPENDITURE COST OF LIVING COUNTERFACTUAL DAIRY DECOMPOSABLE POVERTY DOMESTIC PRICES ECONOMIC GROWTH EGGS EXTREME POVERTY FACTOR PRICES FAMILY FARMS FARM HOUSEHOLDS FARM INCOME FARM INCOMES FARM LABOR FARM PRODUCTION FARM WORKERS FARM-GATE FARMERS FATS FEEDS FLOUR FOOD BUYERS FOOD COMMODITIES FOOD CONSUMPTION FOOD CONSUMPTION EXPENDITURES FOOD EXPENDITURE FOOD ITEMS FOOD MARKETS FOOD PRICE FOOD PRICE INFLATION FOOD PRICES FOOD PRICING FOOD PRODUCER FOOD PRODUCTION FOOD SALES FOODS FRUIT GRAINS HOUSEHOLD BUDGET HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HOUSING IMPACT ON POVERTY INCOME INCOME DISTRIBUTION INCOME EFFECTS INCOME GAINS INCOME GROWTH INCOME INEQUALITY INEQUALITY LABOR MARKET LABOR MARKETS LEGUMES MAIZE MARKET POWER MEAT METROPOLITAN REGION METROPOLITAN REGIONS MILK NEW POOR OILS AND FATS PASTA PER CAPITA CONSUMPTION POLITICAL ECONOMY POVERTY DYNAMICS POVERTY GAP POVERTY INCIDENCE POVERTY INCREASE POVERTY INDICES POVERTY LINE POVERTY LINES POVERTY MEASURES POVERTY POVERTY POVERTY RATES POVERTY REDUCTION PRICE CHANGE PRICE CHANGES PRICE EFFECT PRICE INCREASE PRICE INCREASES PRICE INDEX PRICE INFLATION PRICE VARIATION PRICE VOLATILITY PRICING REFORMS PURCHASING REGIONAL DIFFERENCES REGIONAL PRICE REGIONAL VARIATION RURAL RURAL AREAS RURAL POOR RURAL POPULATION SAVINGS SHARECROPPERS SOCIAL ASSISTANCE SOCIAL PROGRAMS SOCIAL PROTECTION STARCHES SUBSISTENCE SUBSTITUTE SUBSTITUTION SUGAR SUGARS SUPPLY CURVE SURPLUS TARGETING TRANSFER AMOUNTS TRANSFER PROGRAMS TUBERS VEGETABLES VOLATILITY WELFARE MEASURE WHEAT Food price inflation in Brazil in the twelve months to June 2008 was 18 percent, while overall inflation was seven percent. Using spatially disaggregated monthly data on consumer prices and two different household surveys, we estimate the welfare consequences of these food price increases, and their distribution across households. Because Brazil is a large food producer, with a predominantly wage-earning agricultural labor force, our estimates include general equilibrium effects on market and transfer incomes, as well as the standard estimates of changes in consumer surplus. While the expenditure (or consumer surplus) effects were large, negative and markedly regressive everywhere, the market income effect was positive and progressive, particularly in rural areas. Because of this effect on the rural poor, and of the partial protection afforded by increases in two large social assistance benefits, the overall impact of higher food prices in Brazil was U-shaped, with middle-income groups suffering larger proportional losses than the very poor. Nevertheless, since Brazil is 80 percent urban, higher food prices still led to a greater incidence and depth of poverty at the national level. 2012-03-19T18:04:58Z 2012-03-19T18:04:58Z 2011-05-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110928105536 http://hdl.handle.net/10986/3581 English Policy Research Working Paper ; No. 5652 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean South America America Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic AGRICULTURAL ACTIVITIES
AGRICULTURAL ACTIVITY
AGRICULTURAL COMMODITIES
AGRICULTURAL LABOUR
AGRICULTURAL OUTPUT
AGRICULTURAL PRICE
AGRICULTURAL PRICES
AGRICULTURAL PRODUCTION
AGRICULTURAL SECTORS
AGRICULTURAL WAGES
AGRICULTURAL WORKERS
AGRICULTURAL WORKFORCE
AGRICULTURE
ANIMAL HUSBANDRY
AVERAGE PRICE
BASIC FOODSTUFFS
BEEF
CA
CARIBBEAN REGION
CASH TRANSFER PROGRAM
CASH TRANSFER PROGRAMS
CASH TRANSFERS
CEREALS
COMMODITY PRICE
COMMODITY PRICES
CONDIMENTS
CONSUMER PRICE
CONSUMER PRICE INDEX
CONSUMER PRICES
CONSUMER SURPLUS
CONSUMPTION EXPENDITURE
COST OF LIVING
COUNTERFACTUAL
DAIRY
DECOMPOSABLE POVERTY
DOMESTIC PRICES
ECONOMIC GROWTH
EGGS
EXTREME POVERTY
FACTOR PRICES
FAMILY FARMS
FARM HOUSEHOLDS
FARM INCOME
FARM INCOMES
FARM LABOR
FARM PRODUCTION
FARM WORKERS
FARM-GATE
FARMERS
FATS
FEEDS
FLOUR
FOOD BUYERS
FOOD COMMODITIES
FOOD CONSUMPTION
FOOD CONSUMPTION EXPENDITURES
FOOD EXPENDITURE
FOOD ITEMS
FOOD MARKETS
FOOD PRICE
FOOD PRICE INFLATION
FOOD PRICES
FOOD PRICING
FOOD PRODUCER
FOOD PRODUCTION
FOOD SALES
FOODS
FRUIT
GRAINS
HOUSEHOLD BUDGET
HOUSEHOLD COMPOSITION
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOME
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLD WELFARE
HOUSING
IMPACT ON POVERTY
INCOME
INCOME DISTRIBUTION
INCOME EFFECTS
INCOME GAINS
INCOME GROWTH
INCOME INEQUALITY
INEQUALITY
LABOR MARKET
LABOR MARKETS
LEGUMES
MAIZE
MARKET POWER
MEAT
METROPOLITAN REGION
METROPOLITAN REGIONS
MILK
NEW POOR
OILS AND FATS
PASTA
PER CAPITA CONSUMPTION
POLITICAL ECONOMY
POVERTY DYNAMICS
POVERTY GAP
POVERTY INCIDENCE
POVERTY INCREASE
POVERTY INDICES
POVERTY LINE
POVERTY LINES
POVERTY MEASURES
POVERTY POVERTY
POVERTY RATES
POVERTY REDUCTION
PRICE CHANGE
PRICE CHANGES
PRICE EFFECT
PRICE INCREASE
PRICE INCREASES
PRICE INDEX
PRICE INFLATION
PRICE VARIATION
PRICE VOLATILITY
PRICING REFORMS
PURCHASING
REGIONAL DIFFERENCES
REGIONAL PRICE
REGIONAL VARIATION
RURAL
RURAL AREAS
RURAL POOR
RURAL POPULATION
SAVINGS
SHARECROPPERS
SOCIAL ASSISTANCE
SOCIAL PROGRAMS
SOCIAL PROTECTION
STARCHES
SUBSISTENCE
SUBSTITUTE
SUBSTITUTION
SUGAR
SUGARS
SUPPLY CURVE
SURPLUS
TARGETING
TRANSFER AMOUNTS
TRANSFER PROGRAMS
TUBERS
VEGETABLES
VOLATILITY
WELFARE MEASURE
WHEAT
spellingShingle AGRICULTURAL ACTIVITIES
AGRICULTURAL ACTIVITY
AGRICULTURAL COMMODITIES
AGRICULTURAL LABOUR
AGRICULTURAL OUTPUT
AGRICULTURAL PRICE
AGRICULTURAL PRICES
AGRICULTURAL PRODUCTION
AGRICULTURAL SECTORS
AGRICULTURAL WAGES
AGRICULTURAL WORKERS
AGRICULTURAL WORKFORCE
AGRICULTURE
ANIMAL HUSBANDRY
AVERAGE PRICE
BASIC FOODSTUFFS
BEEF
CA
CARIBBEAN REGION
CASH TRANSFER PROGRAM
CASH TRANSFER PROGRAMS
CASH TRANSFERS
CEREALS
COMMODITY PRICE
COMMODITY PRICES
CONDIMENTS
CONSUMER PRICE
CONSUMER PRICE INDEX
CONSUMER PRICES
CONSUMER SURPLUS
CONSUMPTION EXPENDITURE
COST OF LIVING
COUNTERFACTUAL
DAIRY
DECOMPOSABLE POVERTY
DOMESTIC PRICES
ECONOMIC GROWTH
EGGS
EXTREME POVERTY
FACTOR PRICES
FAMILY FARMS
FARM HOUSEHOLDS
FARM INCOME
FARM INCOMES
FARM LABOR
FARM PRODUCTION
FARM WORKERS
FARM-GATE
FARMERS
FATS
FEEDS
FLOUR
FOOD BUYERS
FOOD COMMODITIES
FOOD CONSUMPTION
FOOD CONSUMPTION EXPENDITURES
FOOD EXPENDITURE
FOOD ITEMS
FOOD MARKETS
FOOD PRICE
FOOD PRICE INFLATION
FOOD PRICES
FOOD PRICING
FOOD PRODUCER
FOOD PRODUCTION
FOOD SALES
FOODS
FRUIT
GRAINS
HOUSEHOLD BUDGET
HOUSEHOLD COMPOSITION
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOME
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLD WELFARE
HOUSING
IMPACT ON POVERTY
INCOME
INCOME DISTRIBUTION
INCOME EFFECTS
INCOME GAINS
INCOME GROWTH
INCOME INEQUALITY
INEQUALITY
LABOR MARKET
LABOR MARKETS
LEGUMES
MAIZE
MARKET POWER
MEAT
METROPOLITAN REGION
METROPOLITAN REGIONS
MILK
NEW POOR
OILS AND FATS
PASTA
PER CAPITA CONSUMPTION
POLITICAL ECONOMY
POVERTY DYNAMICS
POVERTY GAP
POVERTY INCIDENCE
POVERTY INCREASE
POVERTY INDICES
POVERTY LINE
POVERTY LINES
POVERTY MEASURES
POVERTY POVERTY
POVERTY RATES
POVERTY REDUCTION
PRICE CHANGE
PRICE CHANGES
PRICE EFFECT
PRICE INCREASE
PRICE INCREASES
PRICE INDEX
PRICE INFLATION
PRICE VARIATION
PRICE VOLATILITY
PRICING REFORMS
PURCHASING
REGIONAL DIFFERENCES
REGIONAL PRICE
REGIONAL VARIATION
RURAL
RURAL AREAS
RURAL POOR
RURAL POPULATION
SAVINGS
SHARECROPPERS
SOCIAL ASSISTANCE
SOCIAL PROGRAMS
SOCIAL PROTECTION
STARCHES
SUBSISTENCE
SUBSTITUTE
SUBSTITUTION
SUGAR
SUGARS
SUPPLY CURVE
SURPLUS
TARGETING
TRANSFER AMOUNTS
TRANSFER PROGRAMS
TUBERS
VEGETABLES
VOLATILITY
WELFARE MEASURE
WHEAT
Ferreira, Francisco H.G.
Fruttero, Anna
Leite, Phillippe
Lucchetti, Leonardo
Rising Food Prices and Household Welfare : Evidence from Brazil in 2008
geographic_facet Latin America & Caribbean
South America
America
Brazil
relation Policy Research Working Paper ; No. 5652
description Food price inflation in Brazil in the twelve months to June 2008 was 18 percent, while overall inflation was seven percent. Using spatially disaggregated monthly data on consumer prices and two different household surveys, we estimate the welfare consequences of these food price increases, and their distribution across households. Because Brazil is a large food producer, with a predominantly wage-earning agricultural labor force, our estimates include general equilibrium effects on market and transfer incomes, as well as the standard estimates of changes in consumer surplus. While the expenditure (or consumer surplus) effects were large, negative and markedly regressive everywhere, the market income effect was positive and progressive, particularly in rural areas. Because of this effect on the rural poor, and of the partial protection afforded by increases in two large social assistance benefits, the overall impact of higher food prices in Brazil was U-shaped, with middle-income groups suffering larger proportional losses than the very poor. Nevertheless, since Brazil is 80 percent urban, higher food prices still led to a greater incidence and depth of poverty at the national level.
format Publications & Research :: Policy Research Working Paper
author Ferreira, Francisco H.G.
Fruttero, Anna
Leite, Phillippe
Lucchetti, Leonardo
author_facet Ferreira, Francisco H.G.
Fruttero, Anna
Leite, Phillippe
Lucchetti, Leonardo
author_sort Ferreira, Francisco H.G.
title Rising Food Prices and Household Welfare : Evidence from Brazil in 2008
title_short Rising Food Prices and Household Welfare : Evidence from Brazil in 2008
title_full Rising Food Prices and Household Welfare : Evidence from Brazil in 2008
title_fullStr Rising Food Prices and Household Welfare : Evidence from Brazil in 2008
title_full_unstemmed Rising Food Prices and Household Welfare : Evidence from Brazil in 2008
title_sort rising food prices and household welfare : evidence from brazil in 2008
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110928105536
http://hdl.handle.net/10986/3581
_version_ 1764387303535411200