Hunger and the Demands for Cheap Dietary Staples of the Extreme Poor

16 Pages Posted: 22 Jan 2021 Last revised: 7 Apr 2021

See all articles by Ramses Armendariz

Ramses Armendariz

University of Illinois at Urbana-Champaign

Date Written: November 12, 2020

Abstract

I construct a tractable structural model of a poor household's demand for cheap dietary staples. This model characterizes the trade-offs that a poor household faces between satiating hunger and satisfying other needs when it spends its scarce resources on food. I use this model to extrapolate the equivalent variation, the willingness to pay, and the dead-weight loss of Jensen and Miller's (2008) price subsidy experiment on cheap dietary staples among the extreme poor (figure 1), and I also use it to extrapolate Pareto improving policies relative to their subsidy treatment (figure 5).

Keywords: Hunger, Staples, Inferior Goods, Giffen Behavior, Giffen Utility, Structural Demand

JEL Classification: D12, I31, O12

Suggested Citation

Armendariz, Ramses, Hunger and the Demands for Cheap Dietary Staples of the Extreme Poor (November 12, 2020). Available at SSRN: https://ssrn.com/abstract=3728187 or http://dx.doi.org/10.2139/ssrn.3728187

Ramses Armendariz (Contact Author)

University of Illinois at Urbana-Champaign ( email )

601 E John St
Champaign, IL 61820
United States

HOME PAGE: http://drarmendariz.com

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