Impact of Food Inflation on Poverty in the Philippines
SMU Economics & Statistics Working Paper No. 14-2011
25 Pages Posted: 11 Nov 2011
Date Written: November 11, 2011
We simulate the impact of actual food price increase between June 2006 and June 2008 on poverty across different areas and whether the household’s main income source is agricultural activities. We explicitly treat heterogeneity in food price changes and the patterns of consumption and production by merging a expenditure survey dataset and a price dataset at the provincial level or lower. While the increase of head count index is larger for non-agricultural households than agricultural households, the opposite is true for the poverty gap and poverty severity measures, because poor agricultural households are particularly vulnerable to food inflation.
Keywords: non-parametric regression, net consumption ratio, global food crisis, vulnerability
JEL Classification: E31, I32, O1
Suggested Citation: Suggested Citation