DO CONSUMER PRICE SUBSIDIES REALLY IMPROVE NUTRITION?

Many developing countries use food-price subsidies or controls to improve nutrition. However, subsidizing goods on which households spend a high proportion of their budget can create large wealth effects. Consumers may then substitute toward foods with higher nonnutritional attributes (such as taste...

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Veröffentlicht in:The review of economics and statistics 2011-11, Vol.93 (4), p.1205-1223
Hauptverfasser: Jensen, Robert T., Miller, Nolan H.
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description Many developing countries use food-price subsidies or controls to improve nutrition. However, subsidizing goods on which households spend a high proportion of their budget can create large wealth effects. Consumers may then substitute toward foods with higher nonnutritional attributes (such as taste) but lower nutritional content per unit of currency, weakening or perhaps even reversing the subsidy's intended impact. We analyze data from a randomized program of large price subsidies for poor households in two provinces of China and find no evidence that the subsidies improved nutrition. In fact, they may have had a negative impact for some households.
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source JSTOR Mathematics & Statistics; EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing; MIT Press Journals
subjects Agricultural and food market
Calories
China
Consumer behaviour
Consumer prices
Development strategies
Diet
Food
Food consumption
Food intake
Food prices
Households
Minerals
Nutrient intake
Nutrition
Rice
Studies
Subsidies
title DO CONSUMER PRICE SUBSIDIES REALLY IMPROVE NUTRITION?
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