Food prices and income poverty in Mexico: regional estimates
DOI:
https://doi.org/10.18381/eq.v21i1.7311Abstract
Objective: this study estimates a system of demand for food products in Mexico, incorporating territorial and income dimensions.The differentiated impact of shocks on prices on economic well-being and the poverty rate is evaluated, considering variations among households and across five major regions.Methodology: using Deaton’s (1988) unit values model and the 2018 National Income and Expenditure Survey (ENIGH), we calculate price and income elasticities, examining the impact of price variations on income and poverty.Results: our results reveal significant regional differences, emphasizing the need to consider socioeconomic and regional variations and to adopt a territorial approach in such analyses for effective policy formulation.Limitations: there are limitations to this study that may affect a complete understanding of poverty dynamics. We have focused our attention solely on food products, excluding a specific group of products, in this case, fishery products. We also assume that households are only consumers of goods, thus omitting the productive and self-consumption dimension.Originality: lies in the direct link between poverty estimates and territorial disaggregation, integrating consumption patterns and specific elasticities for each region.Conclusions: our study highlights the importance of considering socioeconomic and regional differences when analyzing the demand for food products and its impact on poverty. Despite the limitations, our findings underscore the need for a territorial approach in this type of analysis to formulate tailored and effective poverty reduction policies in different regions of the country.Downloads
References
Aksoy, M., & Izik-Dikmelik, A. (2008). Are Low Prices Pro-poor? Net Food Buyers and Sellers in Low Income Countries”. Policy Research Working Paper Series, 4642.
Alexandri, C., Luca, L., & Kevorchian, C. (2015). Subsistence economy and food security –the case of rural households from Romania. Procedia Economics and Finance, 22, 672–680. https://doi.org/10.1016/s2212-5671(15)00282-8
Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The impact of food prices on consumption: A systematic review of research on the price elasticity of demand for food. American Journal of Public Health, 100(2), 216–222. https://doi.org/10.2105/ajph.2008.151415
Araar, A., Rodriguez-Castelan, C., Olivieri, S., & Y Melasquez Carbonel, E. (2018). Demand Systems, Prices and Income Elasticities”. Technical Note. World Bank.
Araar, Abdelkrim, & Verme, P. (2016). Prices and Welfare. https://papers.ssrn.com/abstract=2733402
Attanasio, O., Di Maro, V., Lechene, V., & Phillips, D. (2013). Welfare consequences of food prices increases: Evidence from rural Mexico. Journal of Development Economics, 104, 136–151. https://doi.org/10.1016/j.jdeveco.2013.03.009
Avalos, A. (2016). Household consumption response to food price shocks and the vulnerability of the poor in Mexico: Consumption response to food price shocks. Journal of International Development, 28(8), 1294–1312. https://doi.org/10.1002/jid.3127
Baqaee, D. R., & Burstein, A. (2023). Welfare and output with income effects and taste shocks. The Quarterly Journal of Economics, 138(2), 769–834.https://doi.org/10.1093/qje/qjac042
Chávez, J. C., Villarreal, H. J., Cantú, R., & González, H. E. (2009). Efecto del incremento en el precio de los alimentos en la pobreza en México”. Trimestre Económico, LXXVI(3), 775–805.
Chelwa, J. R., Vulovic, V., & Chaloupka, F. (2019). Using Household Expenditure Surveys for Research in the Economics of Tobacco Control”. A Tobacconomics Toolkit. Tobacconomics.
Colchero, M. A., Salgado, J. C., Unar-Munguía, M., Hernández-Ávila, M., & Rivera-Dommarco, J. A. (2015). Price elasticity of the demand for sugar sweetened beverages and soft drinks in Mexico. Economics and Human Biology, 19, 129–137. https://doi.org/10.1016/j.ehb.2015.08.007
Deaton, A. (1988). Quality, Quantity and Spatial Variation of Price”. American Economic Review, 78, 418–430.
Deaton, A., & Grimard, F. (1991). Demand Analysis For Tax Reform In Pakistan”, Working Papers.
Femenia, F. (2019). A meta-analysis of the price and income elasticities of food demand”. German Journal of Agricultural Economics, 68, 77–98.
Fuentes Castro, H. J., & Carrillo, A. (2014). Estimación y análisis de la elasticidad precio de la demanda para diferentes tipos de bebidas en México”. Estudios Económicos, 29(2), 301–316.
Haq, Z. ul, Nazli, H., & Meilke, K. (2008). Implications of high food prices for poverty in Pakistan. Agricultural Economics (Amsterdam, Netherlands), 39(s1), 477–484. https://doi.org/10.1111/j.1574-0862.2008.00353.x
Hovhannisyan, V., & Bozic, M. (2013). On Price Endogeneity in the Analysis of Food Demand in China”. Staff Papers 159771.
Instituto Nacional de Estadística y Geografía. INEGI. (2020). https://www.inegi.org.mx/
Juárez-Torres, M. (2015). The Impact of Food Price Shocks on Consumption and Nutritional Patterns of Urban Mexican Households”. Bancode México Documentos de Investigación Working Papers N°.
King, M. A. (1983). Welfare analysis of tax reforms using household data. Journal of Public Economics, 21(2), 183–214. https://doi.org/10.1016/0047-2727(83)90049-x
Labeaga Azcona, J. M., Villot, X., & Otero, X. (2018). Energy Tax Reform and Poverty Alleviation in Mexico”. No 1801, Working Papers.
León-Bon, T. S., & Díaz-Bautista, A. (2020). The impact of food inflation on the well-being of households living in poverty in Mexico”. Estudios Sociales Revista de Alimentación Contemporánea y Desarrollo Regional, 30.
Martuscelli, A. (2017). Analysing the impact of price shocks in rural economies: Do house-hold responses matter? The Journal of Development Studies, 53(9), 1518–1534. https://doi.org/10.1080/00220388.2016.1257117
Mckenzie, G. W., & Pearce, I. F. (1982). Welfare measurement: a synthesis”. The American Economic Review, 72(4), 669–682.
Moreno-Aguilar, L. A., Guerrero-López, C. M., Colchero, M. A., & Quezada-Sánchez, A. D. (2021). Elasticidad precio y elasticidad ingreso de la demanda de cerveza en México”. Salud Pública de México, 63(4), 575–582. https://doi.org/10.21149/12026
Pangaribowo, E. H., & Tsegai, D. (2011). Food demand analysis of Indonesian households with particular attention to the poorest”. ZEF Discussion Papers on Development Policy, 151.
Pardo, S., & Ortega Díaz, M. (2014). Pobreza alimentaria y desarrollo en México”. El Trimestre Económico, 81(321), 43–105.
Raper, K. C., Wanzala, M. N., & Nayga, R. M., Jr. (2002). Food expenditures and household demographic composition in the US: a demand systems approach. Applied Economics, 34(8), 981–992. https://doi.org/10.1080/00036840110061959
Ravallion, M., & Lokshin, M. (2004). Gainers and Losers from Trade Reform in Morocco”. Policy Research Working Paper, 3368.
Soloaga, I., Plassot, T y Reyes, M. (2022). “Lo rural y lo urbano en México: Una nueva caracterización a partir de estadísticas nacionales”. Documentos de Proyectos 38 (https://www.cepal.org/en/node/56458), Ciudad de México, Comisión Económica para América Latina y el Caribe (CEPAL).
Tiberti, L., & Tiberti, M. (2018). Food price changes and household welfare: What do we learn from two different approaches? The Journal of Development Studies, 54(1), 72–92. https://doi.org/10.1080/00220388.2016.1269888
Valero-Gil, J., & Valero, M. (2008). The effects of rising food prices on poverty in Mexico”. Agricultural Economics, 39, 485–496.
Downloads
Published
How to Cite
Issue
Section
License
El contenido publicado en EconoQuantum se encuentra bajo una Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
