Hunger and the Demands for Cheap Dietary Staples of the Extreme Poor
16 Pages Posted: 22 Jan 2021 Last revised: 7 Apr 2021
Date Written: November 12, 2020
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: Suggested Citation