The impact of food price shocks on the consumption and nutritional patterns of Mexican households

Available from: 
October 2013
Paper author(s): 
Miriam Juarez-Torres, Banco de Mexico
Topic: 
Poverty - Inequality - Aid Effectiveness
Year: 
2013


In the last years food security has been an increasing concern for national governments, in particular in developing countries. In Mexico, during the 2000’s, recurrent food price shocks have altered the consumption and nutritional patterns of households, producing significant consequences on food security. This research represents an effort to measure the effects of food price changes in a wider dimension that allows a reasonably accurate analysis of who are and how the most likely adversely affected by harmful food price shocks are. The methodological approach of this research uses six household-level survey-based variables within a pseudo-panel framework to carry out the estimations of the demand analysis model. These estimators constitute a reasonably accurate description of household consumption patterns. Furthermore, nutrient elasticities measure the effects of food prices shocks on the nutrient quantity that persons purchase. For the sake of the analysis, estimations are performed for two groups of households and people, those in food poverty situation and those who are not in this condition. The estimations show differences in terms of consumption patterns. Additional evaluations of the past rising food prices episodes were performed to identify which are the food price shocks that affect comparatively more people in food poverty.

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Research section: 
Lacea 2013 annual meeting
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